We all witnessed what can happen when all the bulls, POMO funds, the bots and the Fed all get on the same page earlier this year. I don't think that extreme can happen again, but you must remember that the markets are not real and are being supported by invisible forces (especially at the 1040 level). I think it is game over and they are out of bullets. Plan A (spend), B (spend more and allow accounting fraud) and C (spend even more, more fraud and monetization) have failed. Now they will control the data points coming out with even more diligence and throw out selective soundbites that are really meaningless (like Ben's last Friday morning) at key moments of support. It should become relatively predictable.
Friday I was astounded that INTC lowered estimates and then closed green. If that was not a load of crap I'm not sure what is. If you remember the fall in May was full of lowered estimates that only lead to beats last quarter. I expect more of the same prior to earnings next quarter.
Economic Calendar - Tomorrow is a big day with Case Shiller, Chicago PMI and Consumer Confidence. Actually, this week may prove to be a minefield of data points.
SPX 30m - So, is price backtesting the neckline and about to collapse or is the larger wedge playing out and a slightly more significant pop is in order? Given the oversold daily indicators, I'm inclined to think we get more of a pop. but that is not guaranteed and they can begin to embed here. It all depends on the data this week. If data continues to come in at a substandard rate then Earl may not be the only storm that might hit the east coast this week.
GL this week and don't forget I call the action live at Shanky's Dark Side. Let me give everyone a huge thank you as the blog crossed the 700k hit mark over the weekend.
