Morning Charts 01/07/13 SPX /ES

It's Yellin time. She got confirmed yesterday as the defacto puppet in power. Poor lady. A career busting her butt rising to the top of a male dominated world only to arrive to find the house of cards in compete disarray and in need of a comprehensive overhaul (and that's just looking at it from the outside). Set up to fail is an understatement. Not even some of the most powerful men on the globe would touch that job with a 39 and a half foot pole. 

Budget talks should begin to commence and could get heated. 

I'm positive the weather will blow up the jobs report. Of course bad is good, you must remember that. And don't forget that this record cold is a result of global warming! /s

Daily SPX - Right now, this chart looks like it wants 1795 at least. If the most recent potential overthrow fails then a move to near the 50dma and diagonal support should be in order. This puppy is weak right now and that may show here the rest of this week. 

 Minis 60m - Two things here - One, a yellow channel may have formed. The upper resistance diagonal can be raised. It is set at the closes and not the tails at this time. Two, In the last green rising wedge the lower support diagonal got moved twice before the final form was set. As you can see we're still trading in this rising green wedge. This pink wedge may be defining it's support at this time as well. As long as price remains under 1837 the bears still have a shot. Important resistance today lies at 1834 and the backtest of the original pink wedge support.

Minis 15m - Closer look at what's happening. That lower red diagonal is the upper resistance diagonal of the rising wedge off the November 12 low. Pretty sure the Fed will be watching that. If it were to crack that would open up all the way down to 1750 as an option.

More to come below.

Have a good day. 

GL and GB!