S&P500 Hourly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

POMO wears off around 1230p.  We would defer to some technical analysis, but POMO usually puts and end to this.  Look to get your shorts in after 12 noon – usually when the effect fades.  After days like today and with the effect of POMO, markets can sometimes open down and then bounce up sharply.

Click on chart to enlarge S&P500 Hourly Falls Early And Stalls – Tomorrow’s POMO  Saves The Day

S&P500 Daily -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

A semi-big POMO day tomorrow.  Yes Yellen, this is why the world doesn’t like you – you keep gaming the market higher – this starts near 1000a and ends at 1100a – the effect fades around 1230p.  The next big POMO day is next Monday September 29 – be clear of all your shorts by Friday.  Expect a bounce in the morning followed by a resumed down trend after 1200 noon.  We need to get below 1975 to consider any sort of a reversal.

 

Click on chart to enlarge S&P500 Daily Falls Sharply But Gets Stalled From Moving Lower In The Afternoon – Expect Morning Bounce

S&P500 Hourly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

Looking at price action around the 15th to today, you can see the damage the Fed has caused by creating the largest market bubble in history.  You can thank the Fed and their $4.5T balance sheet for this crap.  No one likes you Yellen.

Click on chart to enlarge S&P500 Hourly Opens Up Sharply And Fails –  Momentum Is Turning Down

S&P500 Daily -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

Candlesticks are indicators – no guarantees.  Bollingers are squeezing and trying to break out, but appear to be failing.  Momentum under MACD is fading.  And we are at all time highs as the global economy continues to stall/shrink (depending on whom you believe).   So it’s now a waiting game – after the Fed gets out of the way – we should see downside.  Since markets are forward looking, October POMO should not be a factor in moving markets higher.  We are watching these indicators, the diverging RUT and the steadily rising VIX in the face of all time highs – all strong signs of a market that is getting ready to tank.

Click on chart to enlarge S&P500 Daily Shows Another High Wave Candle – More Indecision

S&P500 Weekly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

News from Yellen and her infighting Fed is that POMO ends at the end of October.  But Reverse REPO will continue in its place.  So the Fed is out of the “cash infusion” business for now and into the purchase business (Reverse REPO).  There’s still $15B of POMO to contend with in October, but the upside impact should be minimal.  Corps have run out of rope to continue their share buyback game.  Reality is almost upon us.  Commodities are falling sharply (CCI index hit a five year low today) which indicates deflation is well on its way.  The USD is still climbing which puts enormous downward pressure on commodities and US indexes.  The RUT (Russell 2000 – small business index) fell 1% today – it’s small business that usually leads a recovery and this index is in the tank and should fall sharply next week.  October VIX is 14.10 and today’s cash VIX closed at 12.11.  Warning signs are abundant.  On a separate note of how good things are, it appears that the San Diego County Employment Retirement Association (SDCERA) will be day trading to meet their financial obligations.  There is no recovery folks.

Click on chart to enlarge S&P500 Weekly Reverses Back Up In Face Of Bearish Signs – Should Pull Back Early Next Week
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