(to watch on youtube: http://www.youtube.com/watch?v=XEezmZyvwRA)
While we didn't crash on Friday, the sell off was still nice... for the bears of course!
(to watch on youtube: http://www.youtube.com/watch?v=I8_sE5EVuU8)
What's next? Will we resume the uptrend or break the current support and put in another RED week? That's a tough one to answer of course, so I'll just cover both cases and see which on plays out.
On the Bullish Side:
The move up from the 1250 spx area back in March of 2010 could be viewed as a 5 wave pattern move... meaning one more move up is possible. The last 2 weeks could be a wave 4 pattern, that is also making a "continuation triangle" as well. If so, then it could breakout to the upside next week and turn the daily and weekly charts back up. This would then be the move toward the FP on the SPY of 138.86 that still isn't hit yet. That's about 1388 SPX.
This triangle that has been forming is similar to the one formed back around mid-February to the first week of March. That triangle pattern finally broke down and put in our 1250 low a week later. However, most triangle patterns are continuation patterns. Since the market has been going up since that low, you would expect this triangle to break up... not down like the previous one. Also, the market rarely does the same move twice.
On the Bearish Side:
The current triangle has almost the same bearish MACD, Histogram Bars, Full and Slow Stochastics, and RSI reading. Plus, the Dollar has broken out of it's falling wedge and is very bullish right now. Since it goes opposite the market, if it rallies, the market will continue to sell off. While the daily chart on the dollar is getting a little over bought, the weekly is pointing straight up.
There are other factors as well to consider. The recent crash in the commodities market... especially Silver. This was all planned by the Illuminati Gangsters, as JP Morgan was about to get called to deliver physical Silver it doesn't have. The key level was $50.00 per ounce, and since these thugs are part of the government, they orchestrated the whole thing so the wouldn't be called out to deliver Silver they didn't have.
This was all told to Lindsey Williams by the elite gangsters as he reveals it in this interview below. Silver did bounce off the long term support line from the last several years (on the daily chart, and weekly), but I'm not sure if these gangsters need to take it lower or if they were able to exit all their positions now? If they still have a ton of shorts left, then Silver could break that support level and head lower.
(to watch on youtube: http://www.youtube.com/watch?v=6ddK2HOGb1g)
In fact, the low on Thursday last week did break the trendline, but they rallied it back up on Friday to close just one it I believe. I suspect that JP Morgan still has a lot more Silver shorts to unload, so I believe it will continue down next week. This means the dollar will likely continue to rally and the stock market will continue to sell off.
There is also the fact that the market did turn down after the recent Legatus meeting concluded on May 2nd a few weeks ago. Everything tells me that this market will go down next week, not up. While I don't want to bury my head in the sand and not look at both sides, the bearish side out weighs the bullish side right now.
Thinking like a gangster here... I believe they want the market lower this month, so they can announce QE3 in June and rally it back up with more of our taxpayer money (stolen from us, as we don't have any say so in the matter it seems). The evil thugs want to get in at a better price level then the current one I suspect. Silver could go to the 200 ma around $28 right now, or even to the $26 level from January of this year. Below that there is a gap that needs filled from mid-November of 2010... so yeah, the odds favor more downside in the overall stock market.
Short term, what do I expect?
Monday should be the most bullish day of the week, but could sell of a little in the morning first... then rally back the rest of the day. However, I really expect a flat open and a slow grind up. The 1353 spx area is going to be some tough resistance, as it's where the downward sloping trendline intersects at in the triangle pattern that the market is currently still in.
They could trade it in a tight range all day and leave everyone guessing on Tuesday? Will it breakout to the upside then, or gap down out of the triangle? If this market wasn't so manipulated and controlled, the answer would be simple... Gap Down! But you can never underestimate the minds of gangsters! They could turn this charts back up with POMO money and have them all reset by the end of the week. Total Bullsh@t... yeah, I know it! But don't overlook it just because 90% of the charts are bearish.
While I don't know how they could continue to sell off silver, let the dollar rally continue, stop the bleeding in the financial's, and then stage a rally in the stock market at the same time... we've all seen stranger things happen! And that is the very reason that I'm in cash right now... because I just don't know what the gangsters got planned for Monday?
I'll be looking to get short sometime next week, but I need to see the charts get overbought again first. It could happen on Monday or later in the week... I just don't know yet? But if all goes a planned (meaning the charts work as expected), we should see a much bigger RED candle on the weekly chart this Friday. Also, keep in mind that we have another FOMC meeting this Wednesday... meaning that we could just get a lot of chop until after "The Bearded One" speaks at 2:00-2:30 pm.