Morning Charts 11/05/2014 SPX /es

Now that we got the election behind us, can they actually fix anything? I'm not gonna hold my breath. At least one huge positive occurred yesterday, socialism was soundly denounced. He says his policies were absolutely on the ticket, yet another mistake in a long line of bad decisions over the past 6 years.  He's been defeated by the entitlement class he was sent to expand. That's about as low as it gets. 

Now the dangerous part comes, the lamest duck ever fighting to preserve his legacy of lies and failed policies. He must stay the course, Ocare, amnesty, failed foreign policy, even flotus' school lunch program - there has been nothing they have touched that has not become complete failure. O must be feeling like every time he goes to the hoop he gets rejected in the most horrible way. 

Unfortunately he's not through fighting. I'd suspect the "most transparent" potus who was going to be the great unifier will raise his policy of social division to the highest level he can. Desperate people in power are the most dangerous. This man has failed at every turn. This could lead to a manufactured "event" that will attempt to make him a great savior. He's got nothing to hang his hat on. He needs an "event" now more than ever. 

Fortunately Pelosi and Reed are not in the majority now. I sincerely hope the GOP makes those two, especially, feel twice the pain they doled out when they were in power. 


On to the lie - 

SPX Daily - Markets overnight reaction was basically immune to the change in power. This further exemplifies there is only one thing that matters and one thing only - easing. Price is at the backtest of busted rising blue channel support (on the minis this is the STB Red Diagonal of Death). This is a very dangerous spot for bully.  Check busted support at a new ATH after an undeserved improbable potential bull trap run - this is one of those spots you must consider as an ultimate topping point. 

More to come below. 

Have a good day. 

GL and GB!