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.]

We’ve been in a sideways market for most of July – today was a small breakout.  Today was big POMO – tomorrow is same and then that’s it for the month – a few small POMO days.  The US economy should shrink again in Q2 and POMO falls another $10B in August – so we should see markets pull back late this week and into next week.  Zerohedge has numerous articles about reported defaults and divergences and the financial media (MSM) continues to lie about “the recovery” which does not exist.  Technically we are still losing momentum on higher moves.  We need to get below 1950 to start to confirm downtrend.

Click on chart to enlarge S&P500 Daily Up Marginally – Big POMO Tomorrow – Negative Q2GDP Reported Next Week

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.]

Big POMO days on Wednesday and Thursday which means the Fed will be buying and the junk they can lay their hands on.  But the writing is on the wall – the Fed is finally exiting their “print for other financial institutions” policy which has nothing to do with help the economy, just more to do with keeping wealth concentrated.  The all time high from early July has yet to be broken – largely because POMO is now a mere $35B per month and will disappear by October.  Q2 GDP reports July 30 – should show negative.  Expect more downside tomorrow – hourly shows clearer downside picture.

Click on chart to enlarge S&P500 Daily Fails To Find Newer Highs – Hanging Man Top Showing Downside Potential

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.]

Central banks continue to pounce on any moves down with their endless stream of cash.  Although POMO has been cut from $85B per month in December to $35B in July, there seems to be enough reserves floating about to pulverize any bearish moves.  This will all end eventually, but the mess will be enormous to clean up – many will lose their jobs in the process.  Today’s volume was lower – momentum is still down – we expect to see markets turn down next week – we need to get below 1950 for any hint of down turn.

Click on chart to enlarge S&P500 Daily Bounces Right Back After Tanking On Thursdays Thanks To Yellen

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.]

We have mentioned the RUT as a blatant divergence to this and the other major indexes.  Divergences often occur at major tops/bottoms.  Much like March, the RUT should pull the other indexes down.  Hourly shows consolidation – should see move up early and then reversal.  “Adjusted Earnings” season is finishing it’s second week and the market remains flat.

Click on chart to enlarge S&P500 Daily Up Yet Again – But No All Time High Today – RUT Is Still Way 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.]

Dow and NASDAQ100 hit all time / 14 year highs today.  RUT and SPX not so.  RUT is in the tank, but central bankers know how to  fix this.  We expect more upside tomorrow early and pullback later in the day.  We are well entrenched in earnings season – the game remains the same for corporate – share buybacks and ZIRP bonds to finance these buybacks – all done so that central banks have a reported justification to buy anything that moves.  US debt is closing in on $18T – another of Obama’s many accomplishments.

Click on chart to enlarge S&P500 Daily Moves Up Again – Not Quite An All Time High – But Close
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