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 only cover the 60m here, but if you aren’t looking at 30m or 15m with a sensitive oscillator, you should consider it.  Swings like today will be the new norm as we enter the world of a two sided market, something that has gone missing if not for the last five years, definitely the last two years.  We expect a flat open tomorrow and by mid morning we should be heading down again.

Click on chart to enlarge S&P500 Hourly Moves 30 Points Higher In the Final Two Hours – Expect More Wild Market Swings Like Today

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

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.]

Be mindful of the likely POMO bounce at the open, right Yellen?  Once Yellen gets out of the way with her nuisance gaming of the markets – should end late morning, you can expect more downside.  BTFD was supported by POMO and this ends October 28.  REPO could be an issue, but REPO is not spread over the month like POMO.  So much for technical analysis.  We prefer to refer to it as Yellenical Analysis.  Stay small and exit aggressively folks.

Click on chart to enlarge S&P500 Hourly Closes Near Low Of The Day – For The Second Straight Day – 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.]

POMO comes in at 10a New York time, so that means markets will likely move up in the morning.  POMO ends at 11a New York time and it’s affect should end sooner than the usual 1230p – probably between 1130a and 1200p.  Did we get this right Yellen?  Feel free to comment back if our times are incorrect.  So hold onto your shorts until late morning and then enjoy the ride down.  Volatility is way up and big prices swings will make for some great day trading.  Exit aggressively intraday folks.  I personally will be shorting bounces and will not be trading long – too much downside risk.  We are in wave 1 down.  It will end without much warning and the wave 2 bounce will be big.  Keep this in mind and watch your intradays closely.

Click on chart to enlarge S&P500 Daily Moves Up Early And Falls Sharply In The Afternoon – Yellen POMO Tomorrow

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.]

Refer to the daily for support and resistance – the hourly will be too inconsistent when we consider the big markets swings that should come next week.  Good time to day trade.  Scalp ‘em if you got ‘em.

Click on chart to enlarge S&P500 Hourly Tanks Below Channel Support – Get Ready For Big Swings Intraday
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