Actually, I meant, wary of a very unnatural pop upwards. The thing is, these Fed injections create a two-fold increase:
1) A direct effect on the markets by pushing the prices up with brute force, and
2) This is the big “whammy” – these Fed injections are NOT included in the algorithims used for program trading, and are most likely being interpreted as “buying on weakness”. This is a very insidious result of these artificial injections and will, not may, but will result in a dramatic decrease in price when the market finally breaks. We all know Bernanke has been way behind the curve on even the economics in which he is supposed to be an expert. He is clearly way behind on this.
I’m assuming you mean… “very wary going into next week for the bulls”, as the bears should be fed very well if this market peaks and rolls over on Thursday as I expect it too.
Keep in mind, the Fed’s target for this tranche is $27 billion, and after today’s small buy, there is over $10 billion left to go (rough calc from previous buys). If Thursday’s is small also, I would be very wary going into next week…
No POMO effect this afternoon so far, then think we sell off
Actually, I meant, wary of a very unnatural pop upwards. The thing is, these Fed injections create a two-fold increase:
1) A direct effect on the markets by pushing the prices up with brute force, and
2) This is the big “whammy” – these Fed injections are NOT included in the algorithims used for program trading, and are most likely being interpreted as “buying on weakness”. This is a very insidious result of these artificial injections and will, not may, but will result in a dramatic decrease in price when the market finally breaks. We all know Bernanke has been way behind the curve on even the economics in which he is supposed to be an expert. He is clearly way behind on this.
I just checked the volume. There was no big change for the last candle which touched 1143.
Do you have volume indicators available? That would be the real test for H&S…
That’s right leo. Provided this breakout is not a false one.
That looks like an inverted H&S pattern too me. Not good for the bears.
Resistance zone of S&P 500
I’m assuming you mean… “very wary going into next week for the bulls”, as the bears should be fed very well if this market peaks and rolls over on Thursday as I expect it too.
Quite the shadows
Keep in mind, the Fed’s target for this tranche is $27 billion, and after today’s small buy, there is over $10 billion left to go (rough calc from previous buys). If Thursday’s is small also, I would be very wary going into next week…