Morning Post 11/10/11

So, they threw a few buckets of water and calmed the fire down. Don't lose faith bears. Patience will be required. As you have heard me say many times, they are cornered and fighting with all they have to save whats left of an imploding system. Please see, Snap Reactions To Italy's €5 Billion Bill Auction, Which Reeks Of Illegal ECB Intervention | ZeroHedge, "since the ECB is prohibited by law from intervening in the primary, auction market, we wonder just what illegal backdoor funding scheme the ECB has concocted with friendly banks in order to have the auction price where it did, and how much money was transferred by back door channels to keep Europe from imploding one more day."

Minis Daily - Channels, wedge, support and resistance - it is all here.

Minis 4hr - Closer view of the busted wedge.

Minis 30m - Yesterday I gave a Shanky point of 1257 at the backtest of blue wedge at orange S/R line at 7:00 this morning. You see it right above price here. Can I get a spike please, LOL. 1218 support as noted as target and support clearly held.

Minis 1m - VWAP and support at 1236 - that is your line for the day. Also a good look at the 1m 200ma I like to use as support on this chart.

SPX Daily - Watch the trendlines under NYMO and RSI14.

SPX 60m - Green target box for price (not time) is what I like if they don't save it here. One thing that is rather disturbing that I do see is the possible triangle we are in now. If that breaks out the bears better run and hide. This is a similar pattern to many of the moves higher I have seen over the past few years. Just mentioning it. I don't like it one bit. Just seeing something I have seen before and had a nasty flashback (call it post market trauma syndrome).

Dollar - Inverse HnS I showed yesterday.

EUR/USD - Breakdown from yellow rising wedge and completed backtest. That was the point the EUR/USD had its fate sealed. STB target of $116 (lower pink diagonal) still stands after it hits second target of $125.

Remember the reason for the season.

GL and GB.