Morning Charts 07/02/13 SPX /ES

We've been saying it for years here at STB. They can't stop printing, period. It does not matter anymore whether they print or not, the end result will be the same, dreadful. From ZH,

"It is somehow in this environment - when the Fed is monetizing more duration than ever on a relative basis - that the Fed believes it can wean the market off its support: a market that has never been more reliant on the Fed than it is now.

And, hence, the Fed's Catch-22: damned if you taper, damned if you don't."

Thus all we can do is sit and wait for the central planner's party to end. Till they stop (or some "event" stops them), they remain in total control of the farce they still amazingly call a market. The lies are getting thicker, heavier and more frequent. The MSM is doing all it can to appear neutral. The BLS BS is all but laughable now as well as the rest of the propagandist government data stream that comes from around the globe.

For those that missed this late in yesterday's commentary, a post that pretty much puts the cherry on top of the cake that no one seems to admit exits, New EU PlanS Will Make Every Bank Account In Europe Vulnerable To Cyprus-Style Wealth Confiscation  where they ask, "But why have they chosen this specific moment to implement such a plan?  Are they anticipating that we will see a wave of bank failures soon?  Do they know something that they aren't telling us?"

Of course they do. They know how bad things are, and they can't continue to print. They will have to take back THEIR money. Remember it is not yours. They lend it to you. This is a little known secret that no one seems to want to admit to like that cake above. And if you fools in the USA think it "can't happen here" you better think again.

On to the lie -

SPX 30m - Wedging up into the gap with some pretty heavy negative divergences. Of course none of this means anything as they will walk this dog anywhere they like at anytime. If support holds here, I think even a blind man can see where this wedge is headed.

Minis 15m - About all I have to say here is the backtest of the yellow channel support completed yesterday. This should make the bears at least a little nervous. That STB point at 35 and my second major resistance point lies just above.

Good luck out there, Thanks for taking care of things while I can't be here.

Have a good day.

GL and GB!