A lot of smart money has been lightening up in Q1 of 2014. Hence the volumes dropped to anemic levels. Another typical signs of a Wave-5 termination (Apart from divergences) is sudden increase in trading volumes, which is what has been happening with SPY this week. I should the broder indices will follow Russel and if you follow Ichimoku charts there is cloud twist until the end of next week
A higher-high and lower-low from yesterday and closed near the lows. If it moves below today's low on Monday then it is filling the gap real fast back to $41. At that point, this will be a confirmed exhaustion gap and the trend reversal should follow.
Now that is smart trader... You'll see X move down fast if the PMI numbers from China on Sunday goes below 50 (It was 50.2 last month)
Not for long... Another down day or 2 will do it. This is going to 1000... pause... 950... pause and then 850-870
So it be a 600 B market company like AAPL??? AAPL has 180B in revenues now and Alibaba has 10 today...LOL Get some perspective!
Buying X here is like buying gold in Sep-2011. The only difference is that it will fall faster and harder... Just look around any other commodity and how it is trading? Steel will follow...
The commodities completed their Wave-5 back in 2008 and the surge from 2009-2011 was just a retracement. This time the similarity to 1929 is uncanny, where real estate, commodities, precious metals, bonds go down first and then equities follow last.
Another example of WS gimmicks is... All most all commodities are down, but steel stocks are at multi-year highs.
This might be the ultimate climax for this Euphoric rally driven by FED printing. BABA almost took out Walmart's MC intra-day. A 10 BILLION $ revenue company almost traded at 250 B valuation... All when China is slowing down big time....
If there is a huge reversal and it stays that way then we could see some real ugly downside in the weeks to come. Death-cross happening in the Russell as we speak... The last 2 time that happened since 2009, the market sold off hard 10%-20% and both of them were during the end of QE1 & QE2. This QE3 was much bigger and longer, so expect the correction be much deeper and faster as well. There have been countless warning signals all though the summer and the market just shrugged of every one of them. Finally, will reality catch up? After all we are the worst 2 months for the market (historically) and October has been host of 2 crashes. Not to mention we are entering the 2 worst weeks for the markets in any given year...
If the bears can't take it down now... they prob. can't do it in 2014.
Yougov had exit polls (2000 exit and 1000 postal) and is now predicting a 99% chance on 'No' winning.
A lot of big money is counting on a major success of this IPO. They are making sure that the market looks pretty stable and at all time highs sot hat a FB fiasco doesn't transpire! Look at the pathetic volume these ETFs are being driven higher... SPY, QQQ, IWM
Of course... but, they might very well do that and send FedEx packages of cash to america. Wait a minute... FED's mandate is to support super-rich, banks and corporations, not the commoners.
" market is strong enough to support higher interest rates."
By market you mean STOCK MARKET!
FED has only one mandate... Support the stock market.
By printing money for the super rich, banks & corporations who in turn borrow that money and buy stocks. Keep this sham of a wealth effect going. While the middle class (most of america) have stagnant or lower wages, price inflation is every day consumables (Food, Gas etc...)
Then the FED pretends not to know why the economy is not picking up? Why more jobs are not being created? Also, their goal is to ambiguous on purpose...
Death-cross... 50 DMA x-ing 200 DMA on the downside. it has happened only twice since 2009 and in both cases there was at 10%-15% sell-off that followed. Both, just before the and of QE1 and QE2 (Which were much shorter and smaller) Now extrapolate that to the current QE that is 2 years in time and 2 trillion $
Nopes... official results not until after trading tomorrow. But, they might have exit polls.
The market has all the reason to go up and stay up today. Still faded in to the close. If RUT breaks 200 and DC happens... You will see the biggest sell-off in almost 2.5-3 years