Incredible! The futures are actually red! I was not sure that was legal anymore, but when you are the law I guess you can do anything right? One can only assume is that the Fed is ready to let things breathe a little bit. Don't get too excited bears, the /es is still in its channel off the mid-December lows. When that support cracks, then you can begin to look for a correction that will have some merit.
Yesterday morning I tweeted /es 30m Yellow channel up - 1277 support - higher high - all the makings of a blow off top IMHO. #Surreal pic.twitter.com/eXP2ptbU. So far so good. Here is a good look at the /es 60m chart and recent channel support. The blow off top can now be seen in the rise in RSI above the negative divergence. The double divergence in MACD is a killer. All that aside, none of it matters if the yellow support diagonal does not falter.
SPX 60m - Purple support and resistance diagonals for a non traditional wedge.
Daily SPX - Double top under 1300 round number resistance under the pink resistance area that extends to 1305 with weak internals is not a good thing. Daily indicators like RSI still can run a bit.
FOMC Meeting Schedule Chart - Markets just don't fall going into FOMC meetings. With the potential promise of eternal QE why would they?
CPC - I think we're in a bear market and the lows will be similar to those seen back in P1 ('08 bear market) area of the chart so a fall to near 90 may be in order before the bears are aligned to make a run at the bulls.
VIX - Hey, a VIX chart from STB! Don't fall in love with it, you all know I think the VIX is busted and a meaningless relic as far as the markets are concerned. VIX is oversold and I will be looking for it to form a divergence to price soon indicating a turn is coming.
Bullish Percent SPX - See prior divergences - Enough said.
Bottom line is that there is a very large storm brewing odd shore and it will not be long till it blows in.
STB would like to congratulate Ron Paul for a fine showing in NH last night! Keep up the momo folks, he's our only hope for freedom and the only candidate that does not represent tyranny.
GL and GB!
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