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.]

As central banks continue to interfere, the best they can do is jack hammer markets higher.  The economy is flat and fading.  GDP growth in the US in 2014 was largely due to Obamacare - a government created system that is handcuffing the private sector.  After 7 years and counting, government remains a huge problem.  Expect a pullback next week - cycle brackets are being ignored, but they may not get ignored forever.   The key is the USD and as it continues move higher, markets will eventually fall hard.

Click on chart to enlarge S&P500 Weekly Closes Down Marginally – Technicals Show Downside Next Week

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.]

The good news from all this is that the MSM is doing the Fed's heavy lifting by pumping euphoria to the masses like never before.  This is often the case at major tops.  Our friends at Zero Hedge put into perspective just how detached markets really are.  Take note of the chart at the bottom of this linked page. US and the global economies are getting worse each month.   Gravity wins out over time, unless the Fed chooses to purchase the entire stock market itself - we say this in jest, but the Fed is doing a pretty good job of doing this so far.  We are also of the opinion that the Fed's declaration of an unaudited $4.2T balance sheet is a lie.  We believe the Fed's balance sheet number may be greater than $10T with no sign of shrinking.  Technicals are mixed - MACD continues to fade, although a "cross over is starting to form.  The use of cycle brackets on this chart are bigger joke as the market has almost ignored any cyclical moves and has linearly moved up from 2009.  All time highs - and this is why we have said to trade small and scalp your way to profits - there is no such thing as long term investing - the bulls will eventually figure this out.

Click on chart to enlarge S&P500 Weekly Closes Up Third Straight Week As Central Banks Continue To Bid Failing Global Economy

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 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.]

These past six weeks have been the longest consolidation since the 2011 move sideways.  Earnings season, now complete, showed weak/bearish results, but because of the coordinated efforts of share buy backs and central bank buying, the market has held up. We will mention this again because we believe this to be the most significant decision in markets in many years - HFTs are no longer leaping the market higher - HFTs are now made illegal by the CME and ICE.  This "edge" is now gone for the Fed.  They can no longer fraudulently "leap" markets higher using this technology.  The Fed now has to bid the market higher with brute force - an expensive proposition.  Germany is another story as the DAX is up over 30% in four months as Europe continues to fall apart - what a joke.  Technically, the longer we take to get to more all time highs, the more likely it becomes that more all times highs are done.  And with earnings season over (markets usually pull back after this event) and after this up week, we expect to see a down week.

Click on chart to enlarge S&P500 Weekly Bounces Sharply – Central Banks Continue To Bid The Market Higher For The Social Mood Agenda

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.]

Interesting as to what happens when HFTs are shut off.  Thanks ICE.  Next week could be a meltdown - could take us to 1800 or less.  It's not a linear trip - expect lots of wild swings and lots of opportunities to short rallies.  Realty coming soon - it won't be pretty.

Click on chart to enlarge S&P500 Weekly Down Almost 3% – Closes Near Support – More Downside Next Week
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