Morning Charts 04/21/2015 SPX /es

Ah, the new normal, when good = good, bad = good and good can = bad. A true witches brew of fallacies and fantasies, concocted or not, that always seem to come out glowingly positive (in the matrix's eyes). When you get headlines like this you can only shake your head and pray that QE4 comes so they can just get it over with. Futures Surge On First Chinese State Bankruptcy, Greek Capital Controls And Approaching Default. 

"Explaining the catalysts that move the "market" overnight has become so farcical it is practically an exercise in futility and absurdis."

I hate to sound like a broken record, but Greece and Fed speak dominate everything (other than the false hopes for more #FAIL global QE to come). 

And you need to read this to understand the new earnings normal - it's all about the buyback (and not just for IBM - they support roughly 30% of the market now). IBM Reports Worst Sales Since 2002; EPS Beats On Aggressive Buybacks, Cut In Tax Rate.

 "In other words, IBM is now in the aggressive collections business, just so it has the leeway to repurchase its own stock."

On to the lie - 

SPX Daily - My life and a daily composite of everything we've watched and discussed since August of last year. The red rising wedge in detail. This is the third iteration of the wedge as they have adjusted the lower diagonal support to extend the wedge three times. The battle with critical support that I've annoyingly mentioned the past few weeks is clear to see. Volatile consolidation in the black triangle leading to the blue rising channel all at critical support leads to two options, either they defend and ramp or its about to collapse. Any spike to ATH levels will leave yet another nasty negative divergence (which in the past has led to some of the larger corrections).

Freedom Watch - 

This has an angle on freedom, but mainly it highlights Chicago and the massive financial troubles going on there - this place is not just a social powder keg but a financial nuke about to go off. Credit Swap Event Triggers for Chicago Schools: Out of Cash in 30 Days, Cooking the Books to Oblivion:Rauner Ponders Bankruptcy; Emanuel Out to Destroy Middle Class.

Mish also has some excellent posts on Greece you need to skim over. 



More to come below. 

Have a good day. 

GL and GB!