The key will be what they do tomorrow? This looks like the left side of the “V” in the “WV” pattern I said it should make, but the sell off was heavy and this could also be the start of the big move down?
If it gaps down tomorrow and reverses hard then the bulls still have a chance… if not, then it’s the last stair for the bulls!
It’s a 400b swap – the Fed is selling short duration for long duration, so the net increase in its balance sheet is zero. It also going to stop buying treasuries with MBS interest, and instead buy more MBS. This is the cancellation of QE lite. Whether or not the market rallies in the near future, there isn’t any obvious QE for the time being.
Bulls are taking a beating here… not sure what the plan here is? There is usually a rally after Bernanke speaks, but not today it seems. Is the top in now? This bulls seems worried…
However, with that said… I’m more focused on the turn date period over this weekend then the actual price level of the market. If it doesn’t make it up there by the turn date, I’ll still go short on it… as the charts will tell me that the top is in by then.
The market is oversold on just about all the short term charts ACP, so we can expect a rally tomorrow my friend. I’m still sticking to my guns that we’ll rally up to the FP of 127.07 spy… and then totally collapse!
Gap window on the spy is 118.17 and gap fill is 117.25. Gap fill on the spx is 1177.54, which could be there downside target before turning back up. I think this is just a shake out move on the bulls, as I do expect the rally to continue.
The key will be what they do tomorrow? This looks like the left side of the “V” in the “WV” pattern I said it should make, but the sell off was heavy and this could also be the start of the big move down?
If it gaps down tomorrow and reverses hard then the bulls still have a chance… if not, then it’s the last stair for the bulls!
http://reddragonleo.com/wp-content/uploads/2010/06/bull-trapped-up-stairs-with-bear-waiting-with-chainsaw-2.jpg
what the heck was that all about:
rush for the exit door?
big fake out move?
or are we unexpectedly ahead of schedule for a wave down
Could be, there is still a little more money from QE lite until the end of the schedule, but this is effectively a tightening.
It’s a 400b swap – the Fed is selling short duration for long duration, so the net increase in its balance sheet is zero. It also going to stop buying treasuries with MBS interest, and instead buy more MBS. This is the cancellation of QE lite. Whether or not the market rallies in the near future, there isn’t any obvious QE for the time being.
Bulls are taking a beating here… not sure what the plan here is? There is usually a rally after Bernanke speaks, but not today it seems. Is the top in now? This bulls seems worried…
http://reddragonleo.com/wp-content/uploads/2010/06/bull-trapped-up-stairs-with-bear-waiting-with-chainsaw.jpg
However, with that said… I’m more focused on the turn date period over this weekend then the actual price level of the market. If it doesn’t make it up there by the turn date, I’ll still go short on it… as the charts will tell me that the top is in by then.
The market is oversold on just about all the short term charts ACP, so we can expect a rally tomorrow my friend. I’m still sticking to my guns that we’ll rally up to the FP of 127.07 spy… and then totally collapse!
ACP, can u shed some light with this twist of 400b
QE lite was cancelled – and the balance sheet is going to stay the same. This market is done!
Gap window on the spy is 118.17 and gap fill is 117.25. Gap fill on the spx is 1177.54, which could be there downside target before turning back up. I think this is just a shake out move on the bulls, as I do expect the rally to continue.