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 are about three weeks away from the start of year 7 in this bull market thanks largely due to Fed purchases and a bloated balance sheet that is likely close to $10T (and not the stated and UNAUDITED $4.2T).  This is now day 10 in the trend with a smidge of a pullback a few days ago.  Economic performance is once again irrelevant as Yellen continues to bid this beast.  The end to this joke will likely be the strength of the USD - which is likely to driving guidance into the abyss before we end this quarter.  This along with Euro weakness should do the trick.  I would not consider an event to turn this market, because Yellen just hammers the bid button and up we go.  Technicals showed weakness earlier, but now they don't.  How about that?

Click on chart to enlarge S&P500 Daily Closes At Another All Time High – Central Banks Continue To Bid This Market

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.]

Why bother performing well as a company?  Just make a call to the Fed and ask for Janet.  She'll just add your company to the buy list as Cisco and others learned this week.  There is one condition - your company must have a big enough weighting to move market indexes higher.  In short, a smaller group of stocks are moving this market and the other major US indexes.  Somehow economic expansion requires fewer companies according to - well, the Fed.  Because HFTs are no longer playing to leap the markets up, the moves over the last two weeks are costing Yellen enormous sums (not that this really matters - they just print).  After two up weeks, we should see a pullback next week - MACD continues to fade.

Click on chart to enlarge S&P500 Weekly Closes Up Another 2% As Economic Slippage Continues And Central Banks Continue Massive Buying

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.]

Central banks can drive the market up, but they can't hold it.  Sentiment (not shown) closed flat today.  MACD shows some divergence and the bollinger average is flat.  Any upside tomorrow should be weak.

Click on chart to enlarge S&P500 Hourly Spends Most Of The Day Red – Final Hour Rally Fails

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.]

And this is what central bankers do.  They can ramp the markets but they can't hold them anymore - markets jumped and collapsed in the final hour of trade today.  Why?  Because no more technological advantage exists for the Fed to pin the market or leap the market up with conviction as it sells off.  In short, the Fed can't cheat using HFTs anymore. Today showed no sign of follow through from yesterday's move - in fact today's doji (candle) is another sign of indecision / topping.  MACD remains up, but momentum could not carry to the upper bollinger band.  Expect weak up tomorrow at best.

Click on chart to enlarge S&P500 Daily Closes Flat As VIX Closes Up – No Wait VIX Closes Down On Yellen Jack-Hammering In Final Minute Of Trade

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.]

Techicals do show bearish, but with Europe down between 1% and 2% depending on the index, the US did surprisingly we. Our concern is that we spend tomorrow bouncing despite the fact that the global economy is contracting and government data remains biased toward growth regardless of reality (if you think I am saying government data is a pack of lies, you're right).  We should stay below 2070 resistance.

Click on chart to enlarge S&P500 Hourly Has Muted Fall – Expecting Weak Bounce Tomorrow