S&P500 Daily -

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

Not much in the way of warning from a technical analysis perspective.  Volume is fading fast as expected.  Yellen speaks on the 29th and since we expect a green backdrop, we could see a pull back early next week, but nothing substantial until after Yellen unloads.  After Yellen stops talking we could see markets find more all time highs on nothing.  Only then may we well see a roll over.  Since Obama’s mid terms and re-election has timed itself nicely with  up markets, we may only see a roll over of markets after November the 5th.  Six years of Fed and government interference in markets to fool the herd into believing that the economy is fine – of course it is not.  When these markets normalize, and they will, Yellen and Obama will go down in history as the engineers of this global economic disaster.  Will Yellen extend POMO?  Only she knows – as unpredictable as she has become.  And this one 10 minute diatribe will likely determine whether markets close the year red or green.

Click on chart to enlarge S&P500 Daily Plays Blast Off – Moves Up 145 Points In Eight Days – Good Job Yellen – But What About The Tanking Global Economy

S&P500 Daily -

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

Up at the open tomorrow, stall around 11a and roll over by noon.  Yellen is also using proceeds from previous bond purchases to jack the markets – jacking the markets, that is what you call it, isn’t it Yellen?  October 28 is the last shot of POMO – for now. Interesting how the channel “throw overs” pair – one to the support side followed by one to the resistance side.  When markets trend lower, volatility increases and price swings increase.  Be mindful of this as moves lower get more aggressive – exit aggressively and avoid longs overnight.  Cycle brackets indicate more time will be devoted to the downside.

Click on chart to enlarge S&P500 Daily Stalls At Channel Support – Second Last POMO Blast Tomorrow – We Know How It Goes Yellen

S&P500 Daily -

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

So markets are up today because the Fed head punched another $2B or so leveraged US dollars into markets.  In other words, Yellen the market maker was buying.  Yellen the market maker will be buying about the same tomorrow, but the effects should wear off, as per the typical daily POMO cycle, around noon EDT.  Another Yellen backed dump of POMO arrives on Thursday the 23rd.  This should be the second last POMO of October.  Speculation is percolating around a possible extension of POMO into November.  See hourly for details – expect markets to open up and roll over by early afternoon.  Many companies are reporting earnings, but this doesn’t matter (issue zirp bonds, buy back shares, jack EPS, adjust revenue targets, set guidance high and roll back later – lather, rinse, repeat).   Follow Yellen’s POMO and you have all you need – Yellen does the buying until the POMO runs out.

Click on chart to enlarge S&P500 Daily Up About 1% On Day One Of Three Day POMO Week – More POMO Tomorrow

S&P500 Daily -

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

The Fed heads pop up like a carnival game of “whack-a-mole” spewing something and markets take off – again.  Interestingly today, the DAX was up 3.12% on the news that four German Banks are about to fail.  Thanks to Tyler over at Zerohedge for that update.  Failing banks sounds bullish to me and explains why US markets moved higher, right Yellen?  All right.  Enough with the sarcastic comments.  Today’s market move is just another example of the big and irrational swings we are going to see as we head much lower.  Short the bounces and avoid long positions – you may not recover this time around.  These moves are going to get much more volatile – both ways.

Click on chart to enlarge S&P500 Daily Rockets 20 Points In First Five Minutes – Moves 4 More Points For Rest Of Day – Thanks Yellen

S&P500 Daily -

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

In thin markets, it’s easy for the Fed to push markets around.  It appears that game is over.  Lot’s of bull traps being set.  In 2007, the first leg down was about 400 points.  In other words, there’s more downside ahead in our opinion.  Monday, Tuesday and Thursday next week is 1.0B to 1.5B per day in POMO.  As a result, we can expect some stalling and maybe some short term up turns.  After the 23rd, POMO occurs next on the 28th and that’s all.  FOMC meets in the 28-29 which means Yellen bloviates on the 29th.  We all know that means that the 29th should be a big green, “everything is great” up day.  Expect flat open – we should be tanking again by late morning.  Get into your shorts early.  Keep an eye on your intradays.

Click on chart to enlarge S&P500 Goes On A Wild Swing As Expected – Small POMO Thurs – No POMO Friday
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