Friday, July 19, 2013

Morning Charts 07/19/13 SPX /ES

About all I have to say this morning is remain calm. I believe it is quite apparent to all that we're nearing the end of this debt debacle, but objects in the mirror may not be as close as they appear. The Fed has made it abundantly clear, and as we have all known for some time, the markets will crash without Fed support. So the Bernank says they will not taper and will continue to support their farce. The markets are their last great illusion masking reality.

It is true that at virtually any second the markets can let go. They have no support other than the PPT. Not until they lose control or they chose will the markets let go. QE is losing its luster and ability to lift price. At this point I would not be surprised to see QE lifted from $85 billion a month to something in the neighborhood of $105bn.

Ridiculous? Unthinkable? Insane? Of course but they can't just maintain, they must lift. Whose to stop them? It would be praised by those in power and  remain misunderstood by the sheeple who will remain quiet as long as their portfolios keep on going up. They are desperate, so don't think that this can't happen.

They may possibly be about to go to blackmail level II I think. Remember TARP? Well, the markets crash or else is upon us again. The Beranak's words this week may have been some to heed. If they can't stop easing, and if the markets can't be lifted anymore at current levels, if they are going to possibly lose control of interest rates, if everyone in congress is going to lose their job, then what's the next logical step?

It does not matter where you look globally, liquidity must be injected for it is the only life force left. So China, Japan, the EU, wherever they ease it insures the lies can persist, and the markets will celebrate accordingly. Their backs are against the wall. They have painted themselves into a corner via their desperate actions to save their power base and continue their robbery of the general public.

To think they will just let this go is unimaginable. You still have no other options but to let them play their game. To resist is futile as many of you know, so remain calm and cautious.

The bear's time is coming. It won't be long now. Syria, Egypt, Israel, MENA, China, Japan, the EU, Oil. dollar, Treyvon, it is all starting to crumble. They can't keep this juggling act going forever and they can only throw so much money at it.

Minis 30m - I'm watching the green channel for now. Below red channel support and then brown channel support are key. If they begin to go the red blinking warnings signs will be going off everywhere.

As usual more to come below.

Enjoy the weekend.

GL and GB!

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