Morning Charts 05/20/14 SPX /es

At STB we speak a lot about dysfunction. It is rampant in government these days. It does not take a microscope to find it. If you are not careful you can get broadsided by the 2x4 of dysfunction right up side the head.

For those of  you not following the VA saga, maybe you have only missed the prologue. If More VA Whistleblowers Coming Forward, Campaign Says is true then this hot topic is just getting started. In a high act of hypocrisy, you defend me and our corprotocracy, fight wars of aggression and destabilize the globe, and in return we will deny you freedom and proper healthcare when you come back home, maybe this administration is getting its just due?

Sure, this can be some of Bush's fault. I can go for that. The real deal is how is this administration going to become the dominant tyrannical force on the globe if they alienate their muscle? How are they going to initiate marshal law in the US if they've pissed off every service person they have? Hmmmmm? And I ask, have you ever seen the administration scramble so hard so fast (well, for something not O-care or gun confiscation related)?

And in conspiracy corner this morning - White House vows CIA will not stage fake vaccine programs. Well OK then, people of the globe can be more relaxed this morning! Not really, but .... "As Pakistan suffers a resurgence of polio, a top White House official pledged in a letter dated May 16 that intelligence agencies would foreswear the tactic, which is partly blamed for the spread of the crippling disease." Does this story reek of how many things? OK, we won't spy on you but we will give you diseases so our big paharma can come in and make billions. Whatever.

On to the lie -


Gold - /YG - I saw this post at ZH and all I could muster was a laugh - Gold Slammed As 'Panic-Seller' Dumps $520 Million In Futures. So, why? Want the conspiracy side? Well not one person or entity would dump that much physical but ... digital? Kinda makes one wonder. Why is someone in such a hurry to get out of digital gold? And the price reaction to this sale, "Intriguingly, though the notional size was large, the actual move is not as large as we have become used to with the ubiquitous Slamdowns." Physical is setting its base just above long term green support at the 38% retracement 1294.

Minis 60m - The bear case is a head and shoulders with this backtest of busted green wedge support at 1886 resistance forming the top of the right shoulder. The bull case - HnS formations have a tendency to ramp off this exact spot. The red diagonal of death is clearly in the picture. They must avoid that failing at all cost. watch 1886 resistance. First support is 1874.

More to come below.

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Have a good day.

GL and GB!