Friday, August 21, 2015

Morning Charts 08/21/2015 SPX /es

Yesterday was bad. How bad? Well ..... 

  • The S&P is now negative for the year
  • Consumer discretionary sector had its worst day since June 1, 2012
  • All sectors finished the day negative, and only utilities were positive for the week
  • The S&P once again traded below its 200-day moving average level of 2,078.2 on an intraday basis (today is the first time the S&P closed below its 200-day since July 9)
  • The Nasdaq is trading below its 50-day level of 5,075.21 and closed below its 200-day for the first time since Oct. 17
  • Cumulative volume on Thursday was 7.9 billion shares, the most volume since Aug. 12, when 8.28 billion shares were traded
When volume overwhelms the system, "they" lose. FOMC minutes brought confusion at a time when clarity or a concise plan was needed. Am I the only one here at STB that's surprised by the 'delay' in the rate hike? Good = Bad is starting to bite them in the ass. Their data lies or manipulation have been more like lipstick on the pig. 

They must maintain or perpetuate the lie. As some of us learned when we were young, when you lie you must continue to lie till the end, and you can not change your story. Where they have trapped themselves by delaying the impossible rate hike, they now need moar QE. Thus, they are about to have to change their story. We all knew this would come. It was inevitable. They're finally out of excuses and Mr. Market does not like that.

On to the lie - 

200dma is resistance now then 62 area. I'd really expect the PPT to get involved soon. Labor day ramp is in serious jeopardy. 

SPX Daily - Well, we finally have real (although small) positive divergences on the daily chart and an underthrow/oversold technical situation. It's been a while (like a year) since STB called the rising wedge to form, its breakdown and now failure. Now all that's left is to avoid the September disaster and get QE4 out of the way. Of course I'm thinking world war and Obummer dictatorship now more than ever over the next year. They have to have something huge to cover up the lies that are being exposed. 

I mentioned in comments yesterday of a possible multiple HnS scenario leading as far south at 1830. That would take this move to 1990 to complete the head. A move back to 64 for the RS and then failure again. Not sure what the Fed wants, and these scenarios rarely play out (esp in rigged markets). Just something to look at.

SPX 30m - There is the potential of that lower broken rising wedge target like (pink). 

Freedom watch - 

Never on Fridays. 

More to come below. 

Have a good weekend. 

GL and GB!

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