Saturday, August 5, 2017

SPX S&P 500 Minute Charts; FBI Special Counsel Mueller Impanels Grand Jury

On Thursday, 8/3/17, in the afternoon, the SPX took a 5-point nosedive on news that FBI Special Counsel Mueller impanels a Grand Jury concerning the Russia investigations into potential collusion between the Trump campaign and the Ruskies before, during and after the election last fall. A grand jury would be expected for this large an investigation that expands each week, however, it is never good news since a grand jury typically indicts someone. There remains zero evidence that President Trump did anything wrong.

The SPX hits an air pocket dropping from 2474 to 2469 in 3 minutes. However, there is no reason to worry since central bankers will keep printing money and maintaining a flood of global liquidity to keep floating equity prices higher. Price retraces to its 62% Fibonacci retracement at 2472 for the sudden collapse. Then, the next day, Friday, the S&P 500 gaps higher on the jobs report as shown in the 5-minute chart. The purple box shows the 1-minute chart highlighting the drop on the grand jury news.

The 5-minute has a sideways symmetrical triangle in play with the vertical side at about 8 points so the breakout from 2475-ish targets 2483-ish. The full moon peaks for the month at 2:30 PM EST on Monday and stocks are typically bullish moving through the full moon. Price may come back to tap the upper trend line to make sure that it wants to head higher.

Traders are not concerned about any bad news. Comically, they are too busy buying blue-chip dividend stocks at the ask. The pundits parade across television screens one more bullish than the next. Volatility remains at multi-decade lows. VIX 10.03. Trades sip Fed wine all day long and complement each other on how smart they are at picking stocks. 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.

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