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 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.]

This chart says it all.  Economic macros reporting up while 50M Americans remain on food stamps and labor participation rates are the same as the mid 1970s.  Take notice of the V-bottoms going back into May – and long before that.  This is what you get when you have global governments interfering in markets – set up bear traps and then pulverize these bears and force them into a short squeeze position.  The Fed is running short on bonds (their collateral) – this should end ugly in the weeks to come – heard the Fed urging others to sell bonds lately?

Click on chart to enlarge S&P500 Hourly V-Bottoms Nicely As Fed Interference Continues To Drive Markets Up While Economy Contracts

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 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.]

As finance media continues to blatantly ignore financial failures this week in China and Portugal, markets move up.  Central banks continue to force distortion of these markets.  Three weeks of moving sideways – should see pull back next week.  Adjusted earnings reporting continues next week.  July 30 is Q2 GDP for the US – magically we are forecast to go from -3% in Q1 to 3.4% in Q2 – a 6.4% move in three months.  Does this sort of leave you speechless?

Click on chart to enlarge S&P500 Weekly Up Again As Portugal’s Second Largest Bank Holdco Files For Bankruptcy

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.]

Generally, earnings seasons is a time where markets move much higher.  Not so this time.  RUT has also rolled over substantially.  We suspect a reversal in the other indexes will be upon us soon.

Click on chart to enlarge S&P500 Hourly Fails To Get Beyond Opening High – Nothing But Sideways Since Earnings Started
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