Morning Charts 06/20/12 $SPX $ES

Do you ever feel like you live in one of those lesser carnivals that travels the country and sets up in a shady part of town? You know, the low end circus where everything is ridiculously expensive, the food sucks, the rides are dirty and dilapidated, the workers are all zombies and every game you play is designed to rip you off. The reason I ask is that is how I feel about this country and how we are being governed. Somewhere between a bunch of fraud driven side show ripoffs and a used car dealer is where our government sits. This country is fast becoming a side show and is no longer the sparkling and glorious main event.

The whole global financial system has become nothing but a game of chance. Hell, they even rigged that in their own favor. Know what's funny? They are going to even lose at their own game. Skimming off the top and not dipping into your own stash is something that even the less savvy drug dealers know not to do, but not the greedy ass hopium peddlers. They got so high on their own shit they lost all control.



So here we are nearing the end game. They will get one last delivery of their green  (dollars) and pump it to their pushers (banks) who will hoard the good shit and do it all themselves distributing little to the masses thus putting the final nail in their coffin as the drug lord (the Fed/BIS) will come to hunt them down eventually looking for payment. And there you have our global financial system explained to a point even an EBT user can understand.

Sorry for the lack of serious commentary and useful posts the past few weeks, I was right that the markets would consolidate and churn leading up to the Greek vote, the G 20 and today's FOMC meeting. There has been nothing to comment on other than the speculative ramp to my first resistance area near 1341. It has been dullsville. The charts are in a rising wedge and short term very overbought as price meets upper wedge resistance.

This market has been reduced to nothing more than a lab experiment with a bunch of Jr. scientists running the show throwing in a bit of cash here, buying (or selling) some bonds there and sprinkling in a dash of rumor here and there to keep it levitating. STB reminds you to follow the bond vigilantes as they will always be right in the end. Yes, they may be early to the party, but they will be right.

Patience is required as team crony manipulation runs its final few plays. I am still expecting one last fall (still looking to the 1170 range) and then the giant bailout to beat all bailouts and then complete and utter failure to follow soon thereafter. At this time I place about and 85% chance the ultimate top is set and that it will be decades before we ever see these lofty levels again (if the markets even survive to exist in their current state).

Minis  - Blue rising wedge is now complete with an E touch. These can overthrow.

SPX 60m - Well that rising wedge is about as pretty an ABC setup as you will see. anywhere. So pretty it makes me think they will blow it up in your face (as rigged markets do that need short coverings to assist in their levitation). That is a subtle warning to those on the short end here. I hope (as it should) collapse today or tomorrow, but you can never put anything past a desperate crony capitalist machine. 1370 measures out a perfect ABC where C=A. That is just under my second target of 1374.

I've been watching all the other things that I usually present from market technicals to the FX and commods. They have been just as boring basically settling in at specific levels or are completing various retracements or back tests of important levels. There is really little to report (as called EUR/USD backtest of $127 or oil hitting $85 - I could go on but wont - I'm not sure anyone listens anymore). I think we get a break this week with the Fed finally showing their hand. I don't think their language will be any different. Maybe a little more fear will show up, but not much will change in their verbiage.

Let's wait and watch the Fed today. I promise to pick up the charting and analysis now as things should become meaningful again after 2:15 today.

GL and GB!