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).
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.
