Morning Market Summary and Charts 01/30/12 #SPX

Markets moving from a strengthening state of limbo to a weakening state of limbo as the Greek and EU crisis continues to linger. Linger is not the correct term for an unsolvable crisis, I'm not sure what to call it. Danger still exists for the bears in the form of the Fed stealth market support. The illusion that the debt crisis can be solved is being kept alive by the likes of the peons on CNBS that still talk of hope and that the crisis is only another trillion away from being solved and all will resume as normal. They can throw more money at it, but that solves nothing, and there the crux of the problem lies.

Discussion of the golden cross is very popular today. That instance signifies the dislocation of the markets from reality. I have a feeling that the cross will be looked back on historically as a marker of the spot in time when things were no longer what they appeared to be. That moment where the twilight zone was entered. That moment where the illusion that all was well failed.

SPX 60m - I think this chart is all you need today as it gives the smallest and most recent wedge breakdown inside the potential larger black wedge scenario and all the support and fib targets you need.

Minis 5m - Gap thru yellow channel support last night and round level 1300 cracked. 1301.5 taken out so we now have a lower low scenario.

What type and how many sell stops below 1300 that are gonna get triggered is the big question. Greece and the EU still hanging over the markets head. What the set up is has come down to a sell sell situation. The markets are overbought and should sell off whatever solution comes to the EU, or they fail and the markets sell off. We made it thru the FOMC, AAPL, opex and the bulk of earnings season, now the markets need a deep exhale.

I'll get a massive chart post up tomorrow morning that covers everything. Remember the form of the fall is what we're looking for. the gap thru support today is the second real sign that things are turning. The 30m reversal candle at the  open Friday was the first sign.

Read below in the comments for my targets and details as the day progresses.

GL and GB!