At long, long last, the whores of Babylon at the FOMC decided to stop giving their bullish friends on Wall Street free money for two or three days (tops), thus permitting equities and the Euro to tumble. Since it's my largest short, the Euro's tumble has turned my frown upside-down.
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That was a nice move up to a new high on SPX yesterday, but it isn't yet a clear break out of the whippy sideways to up action of recent weeks. It's possible that we'll see a continuation of this sort of action into the 1442 SPX pivot and then an interim top there. The 2010 and 2011 tops were at major technical resistance areas and the interim top in 2012 may well be the same. The next one up is the 1442 SPX pivot and we'll see there whether this move up has the juice left to break over that to the next pivot north of 1500.
Short term I called the high (on twitter) yesterday on ES nicely with a short term broadening ascending wedge. I have two possible support trendlines for that wedge and the higher one has been hit overnight. The lower one is in the 1406 area if that breaks. Worth mentioning here is that these patterns are 73% bearish and a breakdown would target the 1386.5 area low on ES. The likely target would be a little higher as I'll be showing on the SPX chart. Declining resistance from yesterdays high is currently in the 1412.5 area and I would be leaning towards seeing a new high on a break of that trendline. Here's the ES 15min chart with the wedge: