Morning Charts 08/06/14 SPX /es

What day is it? Hump Day!

Confusion reigns in a nervous market. Not good when sitting on critical support, and the Fed is exposed and in a weak position. One would assume they are not ready for the party train to end, so some desperation may be in order sooner than later. You should expect some doveish Fed speak really soon.

STB and company have been discussing the plethora of fuckedupness that exists across the globe right now. They got thru the holiday ramp on the 4th, threw the bears under the bus in one last short squeeze and then lost it. Can they get their mojo back is the burning question all want to know?

Well, they have little time, but a technical near term oversold condition at critical support may be ready to work in their favor. Hmmm, or is it? Is the weight of the economic and political spectrum (not to mention years of lies, false data points, trillions in liquidity, blah, blah, blah) combined with the mounting fear in an incredibly overbought market finally ready to crush the market? 

Does the 'smart money' finally see the inevitable end of the dollar dominance and (again) the Fed lies (like the recent 4% GDP call which STB LOLed on the spot) as their clue to follow Joe Six-pack out of the market? Is an incredibly lame (like the lamest EVER) lame duck potus in combination with the coming elections spooking even the most entrenched elite? So many questions and possibilities - and none of them are good. 

Volatility marks tops. I'm regretting not calling it after the 4th here, but even after the LEH incident the market incurred one last bull trap. Bulltards are bulltards, and they will always be. Ignorant, greedy pricks that deem themselves 10 feet tall and bulletproof. Let 'em soak it up and keep on buying. Be my guest.

I've said it before and will say it again. You saw it the other day, aaaand it's gone, POOF, sorry your money did not do so well, next customer please. In an instant this market lost months worth of work.Take your profits and run - all the way out of the market, brokerage account, bank and dollar. You will be labeled a terrorist for the larger withdrawal of course, but you'll be in good company with the over 1,700 fired servicemen and women that are getting pink slips and will be immediately added to the terrorist list as well. 

So, are you figuring out why they closed the "gates" on the money market funds the other week? Was this a just in time move? Are you ready to take 95 cents on the dollar of what limited amount you are going to be allowed to withdraw? That's a damn good question isn't it? Can you say capital controls? Can you say AmeriKa? 

There are some MASSIVE supportless holes below. Huge chunks will be lost in very little time when this hot air infused house of cards begins to crumble. I'm on the record from the original set of calls in '09 for at least two markt closures in the coming crash (along with my event, war, global default, dollar collapse and deflation to the point that minimum wage will be lowered). Yes, I've been a complete and utter bear that long.

There will be no place to hide. Oh, and don't forget the value of the dollar will more than likely be crashing with the market. Bonds will be safe right? LOL, think again. No place to hide. And who will pay the shorts in the end? That's a question I've been asking for years. 

Ammo, guns, water filter, generator, food, physical gold and silver, anything out of the dollar especially barterable items. Think SHTF. Oh, and pay cash fro everything you can. Don't leave the Feds a paper trail right to your terrorist door.

On to the lie -

SPX 60m - As I mentioned on the fall yesterday - it gave then the positive divergence setup they may have needed on the DCB double bottom. Also price finally got to my (minis) low target. 

 

SPX Daily - Oversold fo shizzle but no pos divs here. You will notice that they don't necessarily need pos divs either. Price is cracking the diagonal of death again. This line in the sand has had great success in marking bottoms for the past year. I'll add something else I've been discussing which is that on each overthrow instance price has back checked the overthrow level before breaking out again. The minis took care of this yesterday, and cash needs something closer to 1900 for this to happen.

SPX Weekly - Overthrowing the overthrow (2x) - how bad is it? See that pink diagonal down there near 1625? That's a busted rising wedge resistance backtest. The 38% retracement at 1650 would be considered a normal correction in historical terms. Again, LOL. Just a target area for you to consider once things really get going. Oh, and don't forget the 1475 open gap and area.

SPX Weekly - And, again, we're in my crash window. 

More to come below. 

Have a good day. 

GL and GB!