I've remained quite calm during this spill, wondering if or when they'd start crying for moar. I was a day early on predicting the call last week. I'm not about to give you a primer on the subject. I've been harping on it for years. I'll let this ZH post summarize things.
"And we better get moar... because the gap between perception and reality is huge..."
I'll put it as simply as I can, no QE and everything goes POOF! No matter the long term consequences. No matter the inevitable result of endless printing. Like a junkie, moar is better. Waking up from the hopium induced high will only expose the horrific surroundings we're living in. The US is now the equivalent of a rat/bug infested, trash filled, should be condemned crack house. Best to just stay as fucked up as possible for as long as we can and not sober up.
Two words - election and Christmas (not to mention the distraction they want the market to be from all the Orwellian issues dominating the globe right now), must be considered.
On to the lie -
The setup allows for a move either way right here. If south the move has a chance to be even more impulsive than last week. If north, they've hit the breaks and a larger retracement should be in order. The move north depends on how much hopium they decide to inject (rumor, promise or real).
SPX Daily - Oversold, only one positive divergence andthe MACD histogram turned Friday. Bottom line is (see past lows on the chart), they don't need any sort of technical signal to make a bottom. They can just declare one whenever they want.
SPX 15m - Friday I noted if they kept a lower high things had potential to get hairy. Either red wedge (bear flag) scenario is not great. There is a chance of an IHnS here with a neckline at 1898. That would yield about a 1980 target.
More to come below.
Have a good week.
GL and GB!
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