Thursday, September 4, 2014

SPX Prints New All-Time Record Intraday High

The SPX prints a new all-time record intraday high at 2009.28 on Wednesday, 9/3/14 directly after the opening bell and then leaks lower all day long. The all-time closing high remains at 2003.37 from Friday, 8/29/14. The ECB rate decision and press conference are on tap for 7:45 AM EST and 8:30 AM EST, respectively, which should dramatically impact global markets. ECB President Draghi's words are important and the largest market move would be expected between 8:30 AM and 8:45 AM.

Interestingly, the 5-minute chart above displays a descending triangle pattern favoring bears but of course the market direction depends on Draghi's words and charts will have to quickly react and reset for the path ahead. The vertical side of the triangle is 10 points so failure at 1999.50 would send price to 1989. If Draghi fires a money bazooka and begins handing out easy money to the audience, equities will rocket higher and the 2009.28 resistance will signal if equities continue higher, or not. 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.

Note Added 10:04 AM: ECB President Draghi fires the QE money bazooka and borrows former Chairman Bernanke's helicopter to drop money from the sky. Chair Yellen sends the Fed punchbowl over to Draghi so he can fill it with European easy money booze here on out. The euro collapses to 1.2997 and bounces. The SPX is teasing the 2009 level printing a HOD at 2009.12 only 16 pennies away from the all-time intraday record high shown above but unable to yet overtake this critical level. Here comes the SPX for another run.

Note Added 10:47 AM:  At 10:11 AM, the SPX, Dow and TRAN all print new all-time intraday record highs. SPX HOD is 2010.98. INDU HOD is 17161.55. TRAN HOD is 8584.61. The Dow needs a close above 17138.20 to print a new all-time closing high and is now dancing around that level at 17141 so this will provide drama all day long. The lower volatility, VIX under 12, provides the upside fuel. The TRIN is flat near one not a ringing endorsement of today's upside strength. For this type of upside in equities, the TRIN should be 0.80 or lower. Copper also provides market fuel with JJC at 38.25 but remaining below the key 38.68 level identified by Keybot the Quant algorithm. The Keystone the Scribe website explains today's extensive market action including the historic QE announcement by the ECB. The SPX typically pops 20 to 30 handles on a central banker easy money announcement and is currently up 10 points.

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