Morning Post, SPX, S&P 500, e-mini

The SPX was green 3 of the 4 days following the April top. Markets just don't roll over and die. They fester and then collapse these days.

BAC and fraudclosuregate are the biggest jokes on the planet and should be market drivers as they blatantly demonstrate and represent what the entire investment universe has become, a total farce. Will BAC go the way of LEH? They Fing should. I have a feeling if they become another GSE (more than they are now) this country will erupt. Pretty soon we'll be running into some real issues of a lame duck congress attempting to push thru some really bad legislation. Let's hope they don't magically heal BAC's woes before the end of the year. I don't think they will, but they will try. This time the banks are not going to be able to hold CONgress hostage and threaten them with financial destruction. The people will not stand for it.

Economic Calendar - Lacker at 9:30, Petrol at 10:30, Plosser at 12:45 and Beige book at 2:00.

Earnings Calendar - NFLX after the close. MarketWatch Earnings Summary HERE.

Pivot Points -

POMO Schedule - POMO today and Friday!

Shanky's Dark Side - Where I call all the intraday action.

SPX 30m - 30m SPX fell to it's 200ma. Completed a 38% retrace of the move off of the 1130 lows and put in a nice engulfing reversal candle in the last 30m yesterday. Markets (on a POMO day no less) may want to work off some oversold conditions.

SPX Daily - Support points are the green arrows all over the place. Wedge is clearly busted. RSI 5 is hurting. We need to pay attention to RSI14 at the 50 line to see if it can bust thru that support. Overbought is still an understatement.

Can the bears fight off POMO and the promise of QEII? Nervous? Youbetcha! Markets and the world know were in a world of hurt as we travel up the river of deNile. This past week or so has been range bound with some really dramatic swings top to bottom.

So, was it a 3 as cash counts or a 5 as the minis count. Let's let that 30m chart cycle and let the market show it's hand. Things are not good, but with this as a POMO day and the fact that 3 of the 4 days following the April top were green let's let the market tell us what to do. What do i constantly harp on 1)form of the fall and 2) volume and impulsive selling. Yesterday was a great start. Exactly what I have been waiting on. Now we just need confirmation.

GL!