Morning Charts 07/29/13 SPX /ES

Again, working on the basic math, if the US economy is supposed to be 70% consumer driven (instead of 70% government) then if this is so (which it is) we're truly in grave trouble, "the latest AP survey of the real America shows a stunning four out of five U.S. adults struggle with joblessness, are near poverty, or rely on welfare for at least parts of their lives amid signs of deteriorating economic security and an elusive American dream."

The stories of economic depression are endless, but as noted in the above post consumer confidence is at a six-year high. Believe what you will. The lies run long and deep, and the sheeple's level of denial is as high as ever. "It can't happen here" is apparently alive and well for now.

We're in one of those grey areas of discovery I believe. With the debt ceiling and taper on/off issues about to bitch slap up square in the face next month, I have a feeling that the real fears are about to be realized. Till then, you have to play their game and ride their coattails. They will keep the game going as long as they can. Remember they have to get their money out forst and position their portfolios for the crash ahead of everyone else.

This is the same minis chart from the OWP at the close Friday. 1700 is not too far away, but it lies thru the backtest of the red and green channels. From here to the 1695 area has a few roadblocks. To the downside the peach diagonal support at 1660 is the real deal. If that is to go things could get interesting.

Daily SPX - You can't get a chart that is much more bearish than this one, yet the price action continues to defy reality. Well, depending on which definition of reality you use, the new one or the historic one.

More to come below as usual.

Have a good day.

GL and GB!