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!