Monday, January 23, 2012

Morning Market Summary and Charts 01/23/12 #SPX

Well, we have arrived. The week STB has been pointing to for almost a month now. We've made it thru the early earnings and opex, now it is time to get the FOMC meeting, AAPL and the Greek PSI out of the way so the markets can do what they need to, correct or worse.

Minis /es 30m - As I have been noting, yellow rising channel (bullish) is trying to give way to the green rising wedge (bearish) as the markets try to roll over. STB has been spot on with these diagonals all month. That upper heavy red diagonal is resistance off the 1370 top. Pay close attention to that point (1322) if it should get close to it. I see no reason to get excited about anything till the lower green wedge support diagonal falters. Another thing is that diagonal needs to fail with flair in my opinion. The bears need a decisive point that marks the turn. As mentioned last week, the form of the fall, does it have substance, will be very important.  



Looking at the COMPQ 30m - note the gaps (yellow) - of the 340 point climb since 11/29 roughly 150 points of the climb is in GAPS. That means that 45% of the climb is air, nothing, nada, huge holes. The blue island gap just under 2720 should be noted. 


SPX 60m - Want all the possibilities? Here they are. Bearish rising wedges everywhere (with some playing out sooner than others) all sitting on top of weakening indicators below. My conservative side likes the black wedge, but that red one ending here looks pretty solid. 


FOMC Meeting Chart - Well, the good news is you won't be seeing this chart any longer after tomorrow for a month or so. I'm pretty sure you are tired of seeing it. Hey, it has done its job. It got us to this point. 


Natgas took out my 2.40 target and hit 2.23 lows over the weekend. Amazing stuff right there. STB likes it when his long term calls come to fruition. About the only one left from the early days of the blog is for my exogenous event to come and rip control of the markets from the central planners. I think I will do a /ng post today.

GL and GB!

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