Morning Charts 08/08/13 SPX /ES

I'm pretty much floored at this point by the markets as a whole. The corruption and manipulation are literally insane. I could do one of those Washington's Blog type poses and cite examples like here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, ...... but let's not. We all know what the heck is going on.

A very quick review would lead us to the simple fact that they are out of bullets. Their lead has run out and the market wants off its chain. Natural forces are finally starting to react to the Keynesian orgy. They have served two masters and now a feud is breaking out between equities and bonds. It seems there is not enough of the Fed to go around anymore.

Add to that minor debacle the global financial crisis, China, Japan, Fukushima, Snowden and the NSA, AP, Benghazi, Syria, Libya, Egypt, IRS, now DHS, and a plethora of other administrative failures (G-20) and you get a witches brew that's been boiling toil and trouble for some time now. Soon the pot runneth over, and when that happens the ghouls and goblins will be released.

There is nothing they can do at this point but spend moar and hold on for dear life. We're very near the end. They are setting up stage 2 of the crisis. This will be very different than the dramatic "recovery" as in this stage they must cover up their lies and failures. Think of your life as it is about to be thrown into a cat box. That's the best analogy I can draw at this point.

It's about to get fugly folks. Get your exit plans in place, and brush up on your survival skills. Once we roll over the top of the mountain, there is nothing but a cliff on the other side, and it is a long way down to the bottom.

Minis 4hr - Above is the long term blue resistance. This is the bull's best case scenario. Below is peach support then green and red support. If peach goes red becomes the critical line. You can see the upside rewards no longer outweigh the downside risks.

Minis 30m- The white channel with peach support creeping up more and more every day. Yesterday I discussed the backtest of the busted yellow support (as I always warn about and discuss backtests in either direction, cause you must know these things). I personally can't see how they can lift it beyond the backtest of yellow or the round number, but then again, it is their world and we only live in it.

I think we have less than 6 weeks left to this bull run in a bear market and then the SHTF.

More to come below.

Have a good day.

GL and GB!