Friday, July 26, 2013

DOW Detail - Morning Charts 07/26/13 SPX /ES

I am so glad this week is over.

Looking at the DOW just as we did with the minis yesterday.

DOW Monthly from 1997 - Different from the minis and SPX - the top here in '07 was a higher high which in turn gave the DOW an upper resistance diagonal that runs over a decade. The blue diagonal is from the close and the black is from the spikes. If the Fed and CB's want a bogey, this would be it. Can they attain it? Not sure at this point. Maybe they have come far enough? Right now blue sits near 15780 and black is closer to 16000.

DOW Weekly - From the bottom in '09 - red channel dominates. Now this formation is common on all the near perfectly correlated indexes.

And what I mean by perfectly correlated and all in the same channel I mean every index is searching for that upper diagonal. And to think that last November that point was so far out of the equation that imagining it was not feasible.

DOW Daily -
You can see the larger red channel on the outside and the upper long term black and blue diags discussed just above. They are close! Looking closer, black wedge/channel (it is close to both and I can't decide what it is) defines the broader move from 2012, and the red channel off the November lows has broken down but not yet backtested.

DOW Daily digging into the upper right side of the chart - I can't tell you how bad I want that support near 14,500 to be a neckline for a HnS. I wanted the top at 15,540 to be a head, but that was a pipe dream as yet another right shoulder, yet we all know what happens in/to right shoulders these days in the Fed liquidity driven farce market. They become bear squeezers. A backtest of busted red diagonal support is really preferred now. Black channel support near 14,900 is very serious stuff. It is a mile away now and kinda out of the question at this time, but I promise if this gets threatened with the lower BB, what's left of the PPT at that time will kill their own children to defend it.

Pretty simple when you take all the BS out of the equation and narrow it down to a few lines on a chart. Well, at this time I think it is. Their game is coming to an end, and TA with its nasty knack of timing things is telling us so.

So there you have it for the belle of the ball. The one index that's values get beamed into the sheeple's brains day in and day out. 30 stocks representing the financial domination of the globe. The index that represents trillions in wealth encompassing millions of Americans. All of that teeters on the brink of destruction. Enjoy the show, It's a real life thriller that's not going to have the traditional Hollywood ending.

Enjoy the weekend.

GL and GB!

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