Danger is near

There is nothing but air supporting the market if we drop out of the rally channel around the 3300 level.  JP Morgan is warning you ...

The Federal Reserve will announce an equity stabilization facility -- authorizing purchases of index ETFs such as $SPY and $QQQ -- at the December meeting.

lyrics by Killing Joke

Overcast the branches bare The autumn leaves have fallen I can hear the magpies laugh I can't shake this melancholy And then the cloud breaks A ray of sunlight gloria As if a promise Some strange kind of euphoria Dark phantoms of the past Some things are best forgotten Like Orpheus don't look back The best years are waiting for you And then the cloud breaks A ray of sunlight gloria As if a promise Some strange kind of euphoria And then the cloud breaks A ray of sunlight gloria As if a promise Some strange kind of euphoria Euphoria euphoria euphoria

85% off the top

An equity crash so vicious and destructive, almost no one catches it.  With only one solid buyable dip (on the September FOMC), wave after wave of Fed sycophants and buy-side grifters are ripped to pieces and then eaten.  

Over in 9 weeks when the Fed announces a formal policy of buying ETFs like $SPY and $QQQ to support equity valuations and keep the deflation monster from devouring the world.

S&P 500 daily

Stimulus, please!

I'm going to be out in the bush next week, but the pols ought to settle their differences soon enough and write some more checks from the Future.

The middle of the channel is about 3,580 into the DNC and the August VIX futures expiration, as good a place as any to stop and reconsider.

Hey Google, the updated Blogger editor is a complete piece of garbage.  It barely works and is buggy and highly unpleasant.  What a waste.  Pull the old branch and throw this away.

If we lose this channel

Where do we go next?

Chicago 1979

Here's the channel; we closed outside it today, with a Fed meeting tomorrow to keep things interesting.

S&P 500 hourly, LOG scale

Once we are back inside the giant pink megaphone, I don't think it will take much to trip us up and drop us back to 2140 on the S&P 500 for 1 of C down.

S&P 500 suggesting C is close

3 of C is a September-October affair, targeting the 1000 level, kicking off right after Labor Day.