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.]

Neat post 2pm trick today courtesy of the Fed – something about minutes and pigeons, no wait, doves.  It won’t last.  When POMO ends October 28, the market should move to normalize.  The global economy is in the tank.  Commodities have tanked (except meats which are sitting near all time highs).  The USD has pulled back, but has recently hit a four year high and likely an eight year high very soon (see USD monthly).  Insiders have been moving out of their positions – which means that while you go long, the CEO (and his colleagues) of the company you just invested in is unloading as fast as he can without crashing the market.  Expect a move up and then we roll over – much like we did two days ago.

Click on chart to enlarge S&P500 Daily 34 Points On Yellen’s Message – Don’t Fight The Fed

S&P500 Hourly -

[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.]

We are hopefully seeing the last of the gaming by the gang of Yellen, but tomorrow might be one of these “game the markets” days.  FOMC blather is on Wednesday – Yellen likes her backdrops green.  Other than this, a strong USD should crush guidance, but here’s a thought.  What may likely happen is corps will show rosy guidance during earnings and adjust later – it’s been done before.  Be mindful of this – we are at all time highs.

Click on chart to enlarge S&P500 Hourly Shows Reciprocating Over Throws On Bear Channel – Technicals Show Downside – But –

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.]

An early morning move up and then a stall.  Today’s “high wave” candle indicates buyers and sellers battled with no real advance for either interest.  With miniscule POMO tomorrow, we would normally expect markets to fall hard.  But with FOMC on Wednesday and sneaky Yellen continuing to interfere using the racket of “we’re helping”, we could see a move up tomorrow.  Earnings season starts tomorrow – another two weeks of “adjusted earnings” and share buybacks to keep the game rolling.  This was a commentary about technicals – and the technicals show downside, but governments like those in Washington have tampered with these markets to get re-elected and probably will continue until after November mid terms.  Just be mindful of this – if you short (or long), trade small – you can recover easily if you are wrong.

Click on chart to enlarge S&P500 Daily Stalls On Follow Through – Today’s POMO Had Minimal Impact – Today’s Move Shows Uncertainty

S&P500 Hourly -

[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 MSM will point to today’s jobs report as to why markets jumped – just another hunt for news to rationalize the move.  What we are seeing is the Fed and its followers buying into the face of strong selling – big swings like these are normal for major market tops as the market readies itself for bigger swings to the downside.  We may see more all time highs going into earnings season, but with a stronger USD, it’s hard to see how guidance will show any upside whatsoever.  We don’t think all time highs will be made.  The world knows that POMO ends in 17 days – the primary driver to these markets over the last five plus years.

Click on chart to enlarge S&P500 Hourly Jumps 16 Points In The First 30 Minutes – Then Another 5 Points Over The Course Of Six Hours

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 up down moves of the last 10 days are typical of the fight buyers and sellers often have near major market tops.  Today’s volume was less than yesterday – for follow through, would expect to see more buyers to support this price jump.  Hourly shows a clearer picture of what happened today.

Click on chart to enlarge S&P500 Daily Rockets 22 Points – Wide Swings Like These Are Typical Of The Start Of A Major Downturn