Afternoon Delight 02/28/12 - Patience

Markets prove it is all about news rumors, LTRO2 and the upcoming FOMC (not to mention several other key dates in between). Till this is all over (March 20th) things should remain dicey in the markets with both up and down scenarios (more up than down of course). Not much to comment on other than there were actually a few 5m gaps DOWN on the RUT and DOW today. This is a very rare event in these liquidity driven markets. Of course the PPT came in and scooped up the markets closing the DOW gap, but leaving one still open on the RUT near 826.

Minis 15m - The yellow channel support was resistance again and here price is yet again right back under it at the white diag we've been following as well. For a while there it looked like some form was actually occurring (and still may be) with price. STB called/Tweeted the green wedge break at the moment and then the blue wedge formed. Is that an overthrow or just another move up. With the gaps and this potential emergence of actual form, I'll say that price action at least has my undivided attention for the first time in a while.

Afternoon Delight 10/12/11, SPX, MUB

Interesting day today as the ramp came to an abrupt end at the prescribed 1220 resistance. Will SPX revert to the bottom end of the range now or are the bears in for more punishment? See the chart below for my answer.

So, what finally got the markets to stop their advance? What is it all about these days as discussed here many times - liquidity - Market Slumps After European Banks Admit They Can't/Won't Raise Capital; Will Proceed With Asset Liquidations Instead | ZeroHedge  "The reason: according to the FT (and certainly take this with a salt shaker if previous experience is any indication) is that European banks have balked at the prospect of recapitalizing at current levels ("Why should we raise capital at these [depressed share price] levels?” said one eurozone bank boss."