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 had some nice square waves form today – thanks to more government nuisance.  Not from Yellen today.  Today’s nuisance factor was courtesy of Japan.  Expect a pull back after US mid term elections.

Click on chart to enlarge S&P500 Hourly Rockets At The Open – Goes Horizontal All Day  – Rockets At The Close

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.]

112 Yen = 1 USD.  About 700B USD converted.  Surprise!!!!

Click on chart to enlarge S&P500 Daily Up Over 1% On Japan’s 80 TRILLION YEN POMO Equivalent – Gong Show Continues

S&P500 Weekly -

[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 point to technical analysis once again as Japan has taken over POMO (from Yellen and the Fed) for the world’s markets.  Yet another wild card.  Earnings season is coming to a close – Whirlpool’s results were worth noting.  Their results and guidance were in the tank and the stock was up 10% on the day of the news.  We expect up moves until the November 4th close (US mid-terms on the 4th) – we were expecting a turn sooner, but Japan changed that.  We should see a sharp decline after elections – the enormous amount of spend and debt to create this false economy is running out of time.  Japan appears to be the last leg to holding up world markets.

Click on chart to enlarge S&P500 Weekly Close Up Almost 3% As Japan Replaces Yellen For POMO

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’ve repeatedly mentioned the influence of the USD.  It appears the USD is ready to make more near term highs.  This is very bearish for US indexes.

Click on chart to enlarge S&P500 Hourly Tanks After Yellen Blather – But USD Rockets – Expect Pull Back 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.]

We’ve spent quite some time discussing Yellen’s influence on the markets (notice how we avoided the word economy).  Without government interference, the markets lead the economy by about 3 months – think earnings and guidance.  When Yellen screwed around with liquidity, she managed to push markets up and do next to nothing for the economy.  In short, the Fed was creating a fraud – markets are good, so economy is good – and that’s supposed to keep social mood buoyant which aids politicians in getting re-elected.  The global economy is a mess and accelerating toward deflation. After the November 4th mid-terms, we expect markets to accelerate downward moreso than they will leading up to the 4th.

Click on chart to enlarge S&P500 Daily Closes Flat As Yellen Cuts Off POMO – For Now – Expect Sell Off Tomorrow