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

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.]

There are two concerns that will keep markets up – POMO (being cut from $35B to $25B for August) and REPO – the Fed is running out of collateral, namely bonds.  The Fed’s cry for bondholders continues, but is being largely ignored.  Not much technical analysis here – assessing government interference is the new tech analysis – for now.  That being said, chart technicals are starting to flatten.  We expect a larger pullback starting Monday.  As well, we expect the July 30 US Q2 GDP to be negative despite positive forecasts (much like the positive forecasts for Q1) and this may accelerate markets into a long awaited and substantial pullback – yes, you can say crash if you want.

Click on chart to enlarge S&P500 Weekly Closes Flat – Weak POMO Next Week – 10B POMO Cut For August

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
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