Happy New Year!

Not the best pic, but here is the RH view from the desk here in CB. 

Here is a present for you bears. This chart should indicate what all of you have been waiting for all year. I regretfully can not cal a top here in the face of the Fed's mandate and POMO, but in any normal instance I would most likely be doing so.This is the second chart in my chartbook.

Everyone have a great New Year.

Thanks again for all the support. Let's make 2011 a banner year for portfolio returns.

Morning Post

Daily Comparison Chart - Respect the bunch!

Minis daily - Controlled ascent.  MACD about to bear cross as is S Sto. The divergence on RSI is pretty harsh. Without POMO I'd be looking at calling a major top here, but we can't go there. We should be close though. Typical holiday volume wind down. 

Bears better make hay today and in the shortened session tomorrow. POMO comes back with a vengeance on the 3rd. Remember not to fight the Fed. Benny and The Ink Jets has promised to keep the markets afloat and he's doing a fine job with that so far. Bears may get a hand when the Fed must support the muni markets in '11 with a heavier hand. Other "needs" will begin to rear their heads in '11 as well. Supporting the EU will become a major issue. All this leads to a flat controlled market with limited upside from here.

Bears will have to remain patient. I believe the econ indicators and earnings will begin to weaken in early '11 and then really fall off later in the year. This will damper markets but not cause the crash. We're gonna need the exogenous or external event I have been calling for to end it all. When that finally happens it will be a game over situation, and I'm looking for martial law to be in effect soon after.

Martial law Shanky? Seriously? Yup, when the SS and pension systems totally collapse you are gonna see the FEMA camps come alive as all the pent up frustrations finally boil over. They can possibly extend this nightmare till 2012, but I have my doubts. I believe the markets will top in February or in the summer and when they do you better have fuel and food. I plan on doing a big write up for the new .com blog for 2011 predictions.

I will be consolidating everything into a new .com site that will be better for everyone. More info on more topics that will free me up to have a broader base. Calling the markets and charting will be primary focus, but getting back into ranting and writing will be much more prevalent. Spreading the news and enlightening the readers will eventually become more important than anything (as long as that will be allowed by the government). With what I plan on writing and posting, I suspect my "handler" (if not already) will have me flagged and a room at the nearest FEMA facility ready for me to occupy.

Thanks to everyone for another great year on the blogs. I honestly appreciate the support from everyone. Way too many to mention by name, but I have to point out Rich, ODA and Incarnate for their superior support both on and off the blog. Without these three keeping my head on straight, I could have easily melted down multiple times. It is tough making daily calls and all. Fortunately we have been on the right side of the trade a vast majority of the year. We're growing and the community is melding nicely. I hope to maintain and grow this going forward.

Thanks again to all of you for voting on SC (hopefully that nightmare will end soon). That is like donating to me cause I get free time, and if I make HoF this month then it will be a constant draw to the site for more readers. Your voting is mostly a huge vote in confidence in my abilities and possibly the best compliment I can get. Little things like that help to keep me going. I am not as elaborate as others and don't have all the fancy charts and stuff, but I do generate what matters in the end, a high percentage of correct market timing calls.

Thanks to all and a happy New Year!

Morning Post

The dollar's movements are not reflecting the markets actions. PPT working OT.

Inverse correlation has been trashed. 

Sorry I am late. Actually caught up on some sleep.

Morning Post

In case you are wondering why I will be distracted all week - this is the back yard.  Just got in from making sled jumps for the kids. Skiing and more work on the igloo later today. Might move here when all hell breaks loose. More pics to come.

I'm here on a dreadfully slow computer I am having to update and make work properly. Gobs of snow everywhere here in Crested Butte, CO.

Happy Boxing Day!

Morning Post, SPX, S&P 500, e-mini

Remember that minis 50% channel line that I have been following for a while now?

Today is a travel day for Shanky. Headed to CO to ski with the family. I will be working each morning as the time change will have me up bright and early. I'll be hit or miss in the afternoons. If the markets are hot and moving I'll be here for sure.

I hope everyone had a great Christmas. We had a special one here in GA as it was my first white Christmas ever (first in over 100yrs on GA). Good omen? Mama got a .38 cal with a lazer sight and the kids got .22 pistols!

China raised rates. Not sure what this week will have in store. Earnings season starts on the 10th with AA. It is after Xmas and all bets are off . I'm thinking late Jan - early Feb for top spot, but it can happen any time and could be in.

Gonna be time to buckle down and get really serious after the 1st. This is gonna be a big year. Defaults, violence, market crashes. We're all gonna have to be on our games.

Thanks for the support and GL!

Merry Christmas

HAPPY HOLIDAYS AND MERRY CHRISTMAS!

Morning Post, SPX, S&P 500, e-mini

Hard to chart here. Looks like price has busted a rising wedge, but that is not all that clear to me. 

Boy this market looks sick. Will my all bets are off till after Xmas call make it to the big day or do we top before (like yesterday)? Either way it is time to start looking at what the fib retracements are calling for. That 5=1 measurement of 1283 is in the neighborhood. Stopping just shy would not disappoint me. Based on the counts we should be very close, but there is this slight problem called the Fed and POMO. Gambling that a manipulated and controlled market that has destroyed divergences like Optimus Prime beats on decepticons has proven to be a fools game, but maybe this time will be different. I'm still a believer that me external event will be the catalyst. It may not mark the top but it will be the one event that will send the markets into that final tailspin they will not recover from.

SPX Daily - Little different view than yesterday. Look at this chart closely. The support line under the MACD and the TRIX (not drawn) are running out of room. Looks like February will be the max (who's been calling for the top late Jan/early Feb with an all bets are off after Xmas kicker?) $BPNYA is above the red market top line. Divergences are everywhere in a market that should have (would have under any normal circumstances) topped back in November after the QEII announcement. We're in some extreme conditions up here.

The 2007 highs are not that far off which should be disturbing to all except the Fed (bubbles do not exist to them). Divergences all over the place with over bullish sentiment are the norm these days, but they keep on pushing the bar higher. EOY prints will be where they want them if they can keep this up. The struggling hedge funds are working overtime to get their heads above water (like most here, the smartest in the world all got burned being short).

I'll be in and out again today. Thanks for all your support and votes. I hope you all are having a great holiday season.

Morning Post, SPX, S&P 500, e-mini

I just can't buy the GDP report. How the US economy grew is beyond me. I think it will be proven eventually to have been a fraud report. Till that point we have to go with what they are telling us.

SPX daily -Upper diagonal resistance. Bottom line is the divergence is about to get blown out and when that happens you get into what I call a blow off top. Anything above here or as it climbs from here, the more ridiculous it all becomes.

Not sure if we're making the pilgrimage to the ATL today as Lil' Shanky I is wiped out. May take II. So I will be in and out today as well. Thanks to all for the comments and great conversation yesterday. We're a budding little community with a bunch of knowledgeable traders. 

Have a good day and enjoy the season!

Morning Post, SPX, S&P 500, e-mini

My ToS data - nice - told you the markets were dead.  BB's are getting super narrow LOL.

Minis simply traveling up this 50% channel diagonal - for a long time. Not so sure they want to get away from it.

Minis up 5 heading into the biggest POMO day on record ($17b and add $11b tomorrow). Hope some of you got to see the lunar eclipse last night. No econ data today but tomorrow we get GDP and Thursday should be busy as well.

SPX 60m  from the 1040 lows with gaps and fibs. Looks to be wanting to roll over setting divergences after a record run in September and October.

I'll be in and out today. Hope everyone is enjoying the season. the fat man comes Friday night! GL!

Morning Post, SPX, S&P 500, e-mini

SPX 10m -backtesting busted support?  Recent bottom, climb and fibs. Note the 41.50 support.

Morning, sorry I did not check in this weekend. I was pretty busy with holiday stuff and the kids. Thanks for the comments and charts that everyone left. I really appreciate the effort to remember to vote for me. Very thoughtful gestures and mucho appreciated.

Wednesday and Thrusday this week are the bid econ data days. See the calendar HERE. 

The big POMO event this week is on the 21st with $17 BILLION possible on ONE day. See schedule HERE.

Big Lunar Eclipse on Tuesday night might generate some sort of solar emptional trading. 

Last week I was looking for a higher high to set a divergence (or should I say another or worsened divergence since the divergence that was set after the last fall was not worked off). Minis up over 5 at this time. Minis 60m are apparently following the 50% channel line and have been for some time.

SPX had been after 1247 twice last week and failed to set a higher high. Maybe that pop this morning will get 'em there. Looking at the two holiday weeks last year this Monday was it, then poof goes the volume. Next week was quite interesting. Not saying there won't be any trading opps or that big moves are not possible. Just saying that most are worried about other things and enjoying the season.

SPX 60m - See the divergence I am looking at with this pop? The daily is there as well.

Speaking of enjoying the season, I will be in and out all week as I have some shopping, hunting, a day trip to the ATL and a few other things going on. I plan on doing morning posts and covering the mornings live all week. At some point next week we'll be hitting the annual pilgrimage to CO. Flight has not been scheduled yet, but we'll be there thru New Years. I do report and work from out there as well.

GL and thanks again for all the thoughtful support.

Open Weekend Post

Have at it! News, charts, comments and the like. All are welcome.

Have a great weekend.

Morning Post, SPX, S&P 500, e-mini

Dollar 60m Inv HnS? You tell me. MACD looks like it wants to run. 82.20 target. that would spank the SPX. 

Tax deal done and markets are not liking it. I thought ORCL and RIMM earnings would possibly boost the futures. I thought wrong. I want to think this 4th has more to go. Based on time I think it needs to be stretched some to get the top of 5 out a little further. This does not necessarily mean down more, but it could. Still targeting 1283. You should know the topping measurements have us in the window already (it is a big window).

Opex, holiday Friday, schools out down here today (which means I may start slacking the pre-market some but not the trading hours), inportant earnings are completed (except for NKE) till Jan 10th, all add up to traders maybe slowing down some. EOY prints are still a priority. Maybe some more insider selling. POMO could be distracted to other areas needing support. Spain and the PIIGS are blowing up. After Xmas all bets are off. 2011 will be the year. they can not extend and pretend much longer. 2012 will be much worse.

SPX 60m - the fall felt large, but in the scheme of things we've retraced nothing. This run IMO is weak based on the fast that price is 3 points off the top but the indicators are lagging horribly. If we gat any pop to a higher high the divergences would be dramatic.

I'm thinking it will be quiet today. Minis have defined support diagonal I showed yesterday. 1250 is resistance diagonal and 41 is resistance. If the minis can get thru 1230 to the downside a significant move could happen. I'm thinking today will stink and trade in a narrow range.

GL today and have a great weekend.

Morning Post, SPX, S&P 500, e-mini

Minis 30m -Channeling down and now up support.

The charts look nasty. If the Fed can be distracted by the bond markets and the EU bailouts there are not enough funds to save all. They can't print it fast enough and the Ponzi will finally die. All of this is happening now. I have come to the conclusion that there is a good chance that the top is set. At this time we have to consider the only two scenarios left - top is set or there is one more pop left in their arsenal. Those waiting on a failed treasury auction to mark the top will be to late. That will be the final shot to destroy the Fed and treasury's Ponzi economic system.

The divergences on the daily charts and the position of the weekly charts combined with the overbought conditions and the euphoric bullishness is the perfect storm. The recent earnings misses are a tell I believe. The biggest being the FedEx miss. One has to ask, how did we have a great inventory build and superior internet shopping and FedEx miss? This leaves a massive hole in their economic rebound story that leads me to question the validity of all the BLS data even more than before.

As for counts or position of indexes, they are all over the place. Who is leading? Tough call, but I believe the RUT is possibly as it counts a full 5 ahead of the SPX. Now, ignoring counts (which I strongly encourage - remember I use them, but rely primarily on TA for all calls) they are in a similar position. The financials fell first againfor the third time. how many times can they collapse and recover? This will be the third such instance recently if it recovers. That trend can not continue.

Remember the DRYS trade I gave you two days ago when it was above $6.40. Now trading below $6. the BDI is still falling and DRYS should revert to at least trade near it's index. Keep an eye on that one.
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3186525&cmd=show[s204970999]&disp=P

SPX 30m This move has been tiny, but it feels massive. I mentioned the 1235 support yesterday and price is stalling there right now. Futures were up till FedEx and are now basically flat. I count a completed 5 off the top and think we should get a corrective of some sort here before further weakness. Right now I am targeting 1220 if not worse. Let's walk this thing down and not get carried away. Remember we have to treat this as the top is possibly in, but are expecting one final leg to the top.The 200ma on this 30m chart is my target (or the 50ma on the 60m). Watch that TRIN here it is getting up where a possible buy signal is coming. That would signal the corrective or the bottom of this move.

Morning Post, SPX, S&P 500, e-mini

SPX 1m -  off the top with gaps and fibs.

LOL, CNBS telling you to plant your own seeds to combat inflation. I know where you can get some (the Big Blog) if you need any. Damn MCC looks like shit this AM.

There was no POMO yesterday. There is POMO today. That may make a difference. Minis down a bit but off their lows.

We have seen wedges bust before in the past year that meant nothing. All the market did was reset the lower support diagonal and extend the run. POMO, fraud and manipulation have a funny way of masking greater issues of reality and placing fantasy front and center. Look at the runs off the Feb and Aug lows and compare or fractal them to this start. All I am saying is tread very lightly into any short scenario until it is confirmed.

SPX daily has some extended divergences that are similar to those that led to the April top. What is different this time? the Fed was PULLING liquidity then and is still pumping it in (at a higher rate) here. So there have been some reversals in indicators (that in any normal market would have marked a top in November after the QEII announcement blow off top) that indicate things may be different temporarily. The TRIX, BPNYA and the MACD turns up here are screaming extreme conditions (all driven by intervention).

SPX 15m - The best look at the busted wedge support (possible backtest?), the gaps and fibs.

SPX set a lower high and low late yesterday. The RUT and COMPQ look the best at this point. the DOW is screwing with everything having set a higher high yesterday (it was also the only one to set a lower low when SPX hit the 1173 bottom), it may be the fake out index.

Possibly a completed 5 down yesterday on the SPX. The 1240 area was recaptured. The counts all say more downside is to come here and possibly some sort of major top was possibly set. The screaming bond market, the actions of the dollar and the effects of POMO will be the markets rudder, not the indicators. Things are not good and the larger issues are finally moving to a position where they must be addressed and can be ignored no longer. At this time I'm considering consolidation in a range to down, but up should be out of play. Let's see what form delivers.

GL today and happy holidays.

Morning Post, SPX, S&P 500, e-mini

Best Buy stunk it up. Gee, wonder what the 4th Qtr is going to bring for even more earnings surprises (as we have speculated here for some time). I guess BB does not get the benefit of FASB tricks the TBTF's do. That call rocked the minis about 5 points. Econ numbers not bad (if you believe them). I ask, how can you have strong numbers but not in electronics when all we buy are electronics?

Minis tried to fight back on the econ numbers, but the BBY call may have been a body blow that may take some time to recover from. Baltic Dry on verge of dropping below 2,000 for first time since August from a ZH tweet. That is not good either. Conflicting data? What is real is bad, and what is manipulateable is always better than expected (till revised). This game can not go on much longer. Denninger on BBY - Best Buy: Oops (That's a Miss)

I updated a ton of charts last night, so I am at least caught up on all the $ charts. Thanks for all your support there.

Looking at the 60m chart things do not look so good right now.

Speaking of the BDI - Note in this chart DRYS relationship to that index and tell me which one is out of whack? It is a 20% move just to cover the Island gap and get to the 30% retracement. That has nothing to do with evening up with the BDI.

Hard for me to go out on a limb with POMO around, but things look weak right now. Apparently all support is lost right now and down should be the path of least resistance for a few days. Looking as low as 1210 if not lower which is what form would suggest for this corrective.

GL and happy holidays!

Morning Post, SPX, S&P 500, e-mini

I hope everyone had a good weekend. Actually had snow flurries here in south Georgia late yesterday. We're finally ready for Xmas at home. Bowl season is just around the corner. Great time of year.

Did not update much this weekend. Needed a break for the charts and the markets, so I took one. Glad I did not, because I'd just be raising hell about having to raise all my fibs again today. I'll get caught up today on the important charts and get to the rest tonight. Thanks for all the votes and support.

Markets reacting to the Far East this AM. Markets are overbought setting divergences. The ISEE Friday was at 230. This is severe nosebleed levels. As mentioned towards the end of last week the TRIN, CPC and several other indicators were extremely toppish as well. Some of these indicators are new to the game that we did not experience in the Sept, Oct run up. Combine that with the screaming 10yr treasury and you are getting a nasty brew for the markets. Alas, there is this one thing called POMO. The cure for all that ills the markets. Don't forget the HFT algos and lack of regulation.

The USB collapsing and the TNX screaming higher indicates a flattening yield curve. This will indicate a risk off trade is building. We're close, but the dailys still have some room to run. So my ramp to Xmas and after all bets are off call is spot on thus far. Still looking at markets topping for good in February , but may have to extend that to early summer.

GL and have a great week.

Open Weekend Post

Time to head for the gates with ISEE at 230. Add that to the TRIN Rich shared and my CPC chart and the overbought indicators and the completed 5th we all think we are seeing and you should have a shot at a descent pullback.

Swine Flu making a comeback. Kept pretty quiet so far by media. I'll look at my SF stock section and see if there is anything we need to jump on.

Have a great weekend.

Morning Post, SPX, S&P 500, e-mini

Nothing to scare the bulls away right now. The Xmas ramp continues today I'm guessing if Consumer Sentiment does not dampen holiday spirits (the BLS is in control of that one so how could it be bad?). Yesterday another HnS has delivered a breakout move (surprised?). Minis have fallen 3 points in the last few minutes off their 33 highs. Could there be resistance up there?

1m SPX showing resistance in the 1233 to 1235 range (where the minis reversed this AM) and the failed HnS. My CPC chart screams we're nearing a major top.

Let's see if we can have some fun today. Its the holiday season.

Let's start the humor off with Obama honors Nobel winner with statement about himself -

"Critics have often said of Obama that "it's all about him," that he has a tendency to reference himself no matter what subject he is discussing.  Could he do any more to prove them right?  But just to show that he is, in fact, humble, the president followed his opening sentence with this:

Mr. Liu Xiaobo is far more deserving of this award than I was.

To that I say, "NO SHIT!"

Morning Post, SPX, S&P 500, e-mini

The best news of the morning (and for some time now other than some hackers trying to take down the establishment) is that It's Official: Ron Paul Is Head Of Monetary Policy Subcommittee. Things could get interesting in DC with Ben now having to face down his greatest (and possibly only) nemesis in DC. For those of you not following the wikileaks wars on the internet, I suggest you do on twitter via @Op_Payback for all the blow by blow. Fascinating stuff to me.




Minis gapped down after the close yesterday and have obviously recovered. 1226 has gone from resistance to support. The HnS pattern that would have projected 1200 is still alive but has lost symmetry. 1235 is the top of the recent trading range. Today is similar to yesterday in that the minis were down then up. That tends to lead to an up then down market. Nothing is guaranteed of course. Just considering at trends.




The SPX rising wedge we were following yesterday that looked to be a corrective might prove to be something different. Markets are really tough to read right now with varying patterns across indexes. What jumped out at me yesterday going thru the charts was the possible triangle on SPX (black dashed) indicating more upside from here rather than a stronger corrective we were considering. I am also considering the possibility that recent trend of consolidated range bound trading may continue here (form a rectangle) as the SPX may remain in the range of 1235 to 1220 for the remainder of the year.

GL!

Morning Post, SPX, S&P 500, e-mini

1m gaps and a bunch of jumbled candles that make little sense. 

What I see at this time -  Best I can assign a count is that it is a 4th wave. Possible 1,2. 

All over the place - 

Believe in the BUNCH! Or Respect the Bunch!

OK, so the futures down 1 and that is it. So much for all the excitement. What happened to the bond vigilantes? I thought they were gonna show up in force after the tax ruling yesterday. IMO the Bernank will be forced to channel some POMO funds to the bond market to keep the yield curve from flattening and thus foretelling another impending crash.

Minis holding support (red) at the 1216 level for now and possibly have a HnS set that targets support at 1200. The channel support (green) is busted. At the top of the chart you see two green TLs narrowing. that is the original wedge for P2. Keeping an eye on the apex where those two lines meet. that can be an event point.  Lets see what happens at the 1226 resistance level and if a right shoulder forms (or a B leg before final C down for this corrective).

Concern over the yield curve flattening indicating a top is coming should be taken seriously. As Ten Year Sell Off Accelerates, The Bond World Is Flat from ZH should be read. Looking at the rise in TNX on this daily chart tells you something is up. Some of the divergences on this chart need to be recognized as well.

Morning Post, SPX, S&P 500, e-mini

Tax law resolution makes the markets happy and the Europeans puss out on a bank run. That is a double doozie for stocks. Throw in a little magic POMO pixie dust and we may have another 25 point ramp today. Minis almost half way there already. Fear - what fear as /SI (silver) gets to $30.75 and /YG (gold) sits at 1432 (that was a joke). Like that little piggy that went we we we all the way home the markets are gleefully ramping and do not appear to want the party to stop. From the 1040 low my call has been spot on. Ramp to the announcement, euphoric pop, drop and now the ramp to the top is all that is left. After Xmas all bets are off. POMO to infinity is the play and the Fed has told all of us they will keep the markets afloat and use the markets to benefit all. I was originally thinking February for the top and still am, but may need to extend that to summer. Bottom line is we are in the last leg up. Question is does thi move end at 1283 or over 1300?

Pop n Drop? Don't know. the daily SPX and daily RUT are on two different planets. My 30m comparison chart is all bunched up. Maybe we need to see if the financials can catch up on the daily comparison before we get the next sell off. Divergences are obvious, but we saw the 30m divergences get abused 8 consecutive times in September. That was a 3rd wave and this is a 5th, so things should not be that extreme. As for now the Xmas ramp is on like Donkey Kong. Not sure what news is out there that can slow the bulls momo at this time. All we can do is wait and look for signals.

At this time I think this is 5 of 3 or possibly 1 of 5.

GL today.

Morning Post, SPX, S&P 500, e-mini

Told you they were off kilter in their inverse relationship as SPX held up (POMO) while the dollar was climbing. Is the dollar ready to fall some more? If so we all know where SPX is going to go. Currency moves tomorrow have a chance to be surprising.

Consolidation continues - 

SPX off the Friday lows. Looks like a wedge and pretty HnS that finally busted support at 11:23. Maybe not? Now the upper resistance diagonal is busted. Was that an E throw under or a bust of the wedge? You can count it either way. Off the bottom - which bottom - it is tough to determine an exact position. Was the spike Friday a 5 of 3 or 5 of 1? Price is acting more like a 4 here than a larger more aggressive 2 of 1. Gray island gap at 23.5.50% retracement near 21 has been it so far. If that holds up we go, but if the 61% retrace gets cracked down we go. Again, tomorrow's supposed run on the banks in the EU may be a nice corrective mover.

I think there are 15open 1m gaps JUST off the move from 1173. That does not include the plethora below down to the 1040 lows.

SPX got within 2 points of it's November high and is trading above the 1219 April high.

DOW is about 60 points off it's November high and is trading above it's 11258 April high.

NASDAQ is trading at it's November high and did take out the November high and is trading well above it's 2535 April high.

RUT has left earth's atmosphere and is in orbit. The index that lagged taking out it's April high 749 has now dusted that and is 18 points above it's November high of 739.

Where are we in the count? We're somewhere in a 5th wave of P2 headed up to the top. Measuring things out hte way I see them 1283 would be the target for the top. It is possible we're still in 1 of 5 but I do not think so and believe we're beginning 2 here. That means there is still a 3 up to come.

December 7th will be a big day as all over the EU the citizens (they protest and raise hell and deserve that title - we're sheeple that don't do squat) begin to pull their funds from the banks. Look out for that. I believe we will see C leg down of 2 of 5 there.

AUD/JPY is consolidating and has busted correlation from the SPX. the dollar is backtesting the busted channel support here and is just under it's 80.11 resistance. The EUR/USD has completed a 38% retracement of the last fall and is reversing. So dollar up and EUR down over the weekend, might be time for those trend to reverse.

Minis trading at 1216 support and have been range bound since Thursday between 24 and 16. If 16 cracks 12, 07 and 00 are the major support levels.

GL this week!

Why does Scrooge love all of the reindeer?
Because every buck is dear to him!

Open Weekend Post

Have at it.

Morning Post, SPX, S&P 500, e-mini

NOW WE'RE TALKING!

Now the 30m chart below is ST but this daily still shows the financials lagging quite a bit. Do they need to catch up before a more significant correction can occur or are they where they need to be and everything needs to drop to their level? More fin charts to come.

Thanks to Incarnate for pointing this out (via text message - he's at work - not really working). Remember we like it when these charts bunch up like this at tops or bottoms. Finacials leading down so far. Some indexes have set lower highs (SPX and DOW) and others (RUT and COMP) higher highs. The ST indicators are screaming sell. Of course that comes with massive amounts of caution in POMO land.The dollar was falling and that has stopped to some degree and it like the markets is consolidating. I had mentioned several times FAS the past couple of days. I hope some got that play as the financials did play catch up and FAS outperformed.

CNBS trying so hard to cover up bad jobs report. They appear so "surprised".This bullshit is catching up to them. My opinion, the Dems needed a push or some bad news to assist with the dumping of the Bush tax cuts.

Minis fell from a high of 1227.25 which overnight finally took out the November QEII announcement highs and fell in a "flash" to the April high support at 1216. Below 16 just like on SPX you have 1207 and then 1200 support.

ECB Intervention Continues: Trichet Accelerates Portuguese Bond Buying, Forces Short Squeeze from ZH notes that the EU is now in full monetization mode. Yippie! Extend and pretend has extended across the pond. This will virtually ensure the death of western economics as we know it, yet it buys the crooks some more time to leach off the system on their way out.

We've been looking at that 30m chart for a corrective and also at the daily (above zero) MACD bull cross (that will get whipsawed this morning). POMO and the dollar have been the turbo boost. EUR/USD spiking this morning and the dollar cracking channel support should give you a hint that this run is not over.

Happy Friday and GL!

Linus Van Pelt: "And there were in the same country shepherds abiding in the field, keeping watch over their flock by night. And lo, the angel of the Lord came upon them, and the glory of the Lord shone round about them: and they were sore afraid. And the angel said unto them, 'Fear not: for behold, I bring unto you good tidings of great joy, which shall be to all people. For unto you is born this day in the City of David a Savior, which is Christ the Lord. And this shall be a sign unto you; Ye shall find the babe wrapped in swaddling clothes, lying in a manger.' And suddenly there was with the angel a multitude of the heavenly host, praising God, and saying, 'Glory to God in the highest, and on earth peace, good will toward men.'"

That's what Christmas is all about, Charlie Brown.

Happy Hanukkah!

Morning Post, SPX, S&P 500, e-mini

RUT 30m - 

September - Just as a reminder. Just about the same pace out of the gate here in December with a few more gaps. 

Dollar - that 4hr bearish engulfing is not good at all for shorty.  While that lower BB is supporting price here that MACD looks sick and is a ways from turning.

 Combine the above short term with this daily chart and you can see why I am considering a possible backtest of the busted green diagonal. There will be no bears left if this happens (barring some sort of bizarre correlated move with SPX).

Time for the 5th wave up on the EUR and the final top for it (near my February top target point). Next time it hits that green upper resistance diagonal it may be all over.

Gap central with fibs. Stalling at the island gap.

Listening to CNBS make me want to puke most of the time, but especially this morning with Liesman psewing his employment bullshit.

The 30m charts were almost there at the close yesterday and should be ready for a turn here. We all remember the umpteen negative divergences blown thru during the POMO lite period (the unofficial QE that never existed but it did after QEI stopped and they had the failed pulling liquidity experiment after the April top). Can it happen again? Sure it can. Anything can happen in the land of fairy tales and unicorns. I'm hoping for some sort of corrective on the SPX to the 1200 to 1195 area, but that is it for now. Price appears to be channeling (possibly a base channel?) on most indexes.

I do believe the bears got screwed yesterday by pure manipulation. I do think they (the Fed and Treasury) know the counts and follow classical TA and know when to intervene. They have now changed the game yet again, they are in the process of reversing the daily indicators and have halted the fall at this time. POMO is back in play. Where they took the first month of POMO no one knows, possibly to the EU or to the muni market.

More to come. GL today!