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.]

Same POMO for September as for August – so much for tapering.  And since the US GDP is at 4.1%, Yellen believes more cash injection is required.  Makes no sense, but the Fed continues to be the never ending nuisance.  We are close to channel resistance.  Market volume is at record lows.  How much longer will this joke market last?  Not sure.  If you are in the market, keep small positions and exit quickly.  We are closing in on six years of up market with one significant pullback.  When the sell off happens, it will be ugly.

Click on chart to enlarge S&P500 Weekly Up Fourth Straight Week To Another All Time High – Global Economy Remains In The Tank

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.]

Market retardation courtesy the Fed should end very soon.  The Fed gave a few speeches this week, but the reality is that POMO is done.  This means the Fed can no longer buy bonds and keep rates low because the Fed doesn’t have access to the cash anymore (the printer is off).  So the coupon rates for US bonds should rise, barring a mass rush from foreign interests that may keep rates low.  The US economy is the lowest risk economy, regardless of what the MSM is bloviating.  As a result, we expect rates to move up incrementally very soon – the Fed has little to say about this.  And rising rates should tank the markets as early as next week.

Click on chart to enlarge S&P500 Weekly Up Another Near 2% On Failing Global Economy – POMO Ends In October

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.]

Any signs of reversal are immediately met with a wave a buying until the bears get crushed and we return to the upside.  It makes the down move from three weeks ago look like a speed bump.  Nothing much aligns with markets being this high.  We’ll just have to tolerate Yellen and her followers jack-hammer this market higher.  A morning star is an extremely bullish sign – but on the pathetic volume we are seeing, this may not hold.

Click on chart to enlarge S&P500 Weekly Shows Morning Star Reversal As Markets Get Gamed Higher

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.]

Today’s move up made the markets green for the week.  We closed showing doji – a time of indecision and typically a stall before a continuation of direction – in this case down.  Europe closed down between 1.5% and 2%.  US markets will likely play catch up early in the week.

Click on chart to enlarge S&P500 Weekly Closes Flat – Trend Down Should Continue Next Week

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.]

So we were pumped full of economic macros showing nothing but growth and the markets tanked. Why?  Because the Fed cut its POMO for August down $10B to $25B leveraged.  That means less government interference in what’s left of the free markets.  We still have to tolerate the Fed juicing the economy despite all this economic upside for three more months, but the effect is diminishing.  The reality is that when the Fed gets the heck out of the way, these markets will fall a lot further and return to reality – or worse.

Click on chart to enlarge S&P500 Weekly Down Sharply On Rising Volume And Bearish Technicals
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