SPX Daily Chart Explains Coordinated Central Banker Intervention Controlling Markets

The move off the 1560 bottom to 1675 top is 125 points in 13 days. The SPX is moving up ten handles per day due to coordinated central banker intervention. The bottom occurs when China avoided a Lehman-moment on 6/24/13 and 6/25/13 stepping in with bank liquidity. Traders realize that China is like all the other central bankers. They will funnel money into their financial systems to attempt to avoid collapse. The next day ECB's Draghi says "he is ready to take action," and the markets love it when Super Mario signals the all-clear. During the week of 6/24/13, the Fed heads came in waves, one after another, day after day announcing that the markets do not understand the Chairman's perceived hawkishness and that what he really meant was QE forever and beyond.

That took markets into the holiday week and right off the start on Monday, 7/1/13, Fed's Powell proclaims that "stimulus will continue for quite some time." Seasonality helps as new money enters the markets at the start of a new month and quarter.  On July 4th Independence Day holiday, BOE's Carney, fresh from Canada, provides a wink, wink, nudge, nudge, know what I mean, know what I mean, commentary that clearly signals more QE coming in August. The bull party begins with booze while Draghi supplies the crack cocaine saying that "rates will stay low for an extended period."  The markets cannot get enough of this Caligula-style orgy of joy. The Jobs Report helps on 7/5/13 as U.S. markets open for trading but the BOE and ECB had already sent futures higher and dictated the market direction higher.

This week begins with Draghi continuing to pump the low rate talk. He gets a lot of mileage out of his lip service. Then Greece is bailed out even though they are missing financial targets and the country remains mired in depression. But the free and easy money flowing whips Europe into an upside frenzy and pumps the U.S. equities again. The FOMC Minutes were a non-event so after the close last evening, to right the stock market ship, and pump the markets to close at new all-time highs, Chairman Bernanke announces that "the Fed will remain accomodative for the foreseeable future." The word 'foreseeable' was the crowning achievement of the entire coordinated, global easy money, rally. The central bankers control the markets. Obviously, the Fed's mandate is to maintain an elevated stock market. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.