Wednesday, May 2, 2012

Morning Market Summary and Charts 05/02/12 #SPX $ES

I don't put much if any weight in the ADP number after all the government is just going to set the employment figures where they want/need anyway. So as Zero Hedge infers but but but the ISM number yesterday?

"However, on an apples to apples basis, one thing is certain: record warm winter payback is a bitch. And finally, that whole Obama export renaissance is not doing all too hot: goods producing sector: -4,000 in April, while manufacturing jobs declined by -5,000. But, but, the soaring ISM..... oh forget it." ADP Misses Big, Prints Lowest Increase Since September; Manufacturing Jobs Post Shocking Decline | ZeroHedge

As we all know putting faith or believing any number you see from the establishment and thinking they are real is quite the mistake. You have a better shot at having a Unicorn or a fairy showing up to take you on a trip to fantasy land.

As I have been discussing for a few weeks now the charts (regardless of actual price action) are across the board set up for an event of some sort. It is rare that all the stars align, and TA is calling for a substantial move south. Yes, I know, follow the Fed is what I say, and I still stick with that, but the patience and form part of my statement are starting to weigh heavy.

There are head and shoulders setups all over the place that we have been following (some for well over a year) that are ready to play out. As warned here constantly (and proved by the actions of the ruling manipulative central planning cabal) right shoulders have been nothing more than a launching pad to squeeze the shorts and bury the bears. I caution against getting to deep in anticipating a breakdown at this time as the Fed in an election year and with everything else crumbling around them will pull the QE bazooka as promised if necessary. We all can reliably ascertain what the market's reaction will be to that.

So let me just start laying out the charts. The only commentary that is necessary is for you to see the daily DOUBLE divergences. Also note that the SPXA50 stands at 320 and the DOWA50 stands at 22, which begs the question, just how lopsided is this run with both indexes at or near highs?

Daily INDU - This chart is sick ready for a real corrective.

Daily SPX - 7 points is not a higher high, but the weakness is unmistakable. Will get a 20/50 bear cross today.

60m SPX - 1341 still looms.

Weekly SPX - Note the internal weakness in the divergences and combine that with the possible HnS setup.

And the cherry on top -

BPSPX - The divergences tell it all. See the pink lines predicting tops. It is never good when you have collapsing bullishness into rising price.

We're close, but you still have to give credence to patience, form, follow the Fed and wait on the catalyst to show.

GL and GB!

Minis 15m -

Minis 60m -

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