SPX 5-Minute Chart HIghlights 11/29/12 Fiscal Cliff Drama Ascending Triangle

The happy talk, and sad talk, continues with the fiscal cliff negotiations. If employees played out such shenanigans in public, bickering like babies, Keystone would fire all of them.  Today's installment in the soap opera As the Stomach Churns shows the big drop occurring today when Speaker Boehner dropped the bombshell news that there is no progress over the last two weeks withthe fiscal cliff negotiations.  Then Leader Reid stepped up to the microphone espousing his standard rhetoric, promising a solution, but in the next sentence not guaranteeing anything. Both sides simply talk past each other.  They are a very dysfunctional family.  Senator Schumer grabs the microphone from Reid and announces that a deal will occur before Christmas, the new magic words. The markets loved that. He must have had a cell phone app for the markets and knew the Christmas statement would save the downward slide. It is ridiculous, a national embarassment.

The 5-minute chart is in negative divergence receiving a couple spank downs during the afternoon. The move up to 1418 keeps resulting in less and less oomph to the upside. However, note the clear ascending triangle forming. Watch this closely in the morning to see how it plays out. Price will fluctuate between 1414 and 1418 and then will have to pick a side. Bulls win above 1418 and bears win below 1414.  The vertical side of the triangle is 10 handles so the break out at 1418 would target 1428; the 1429 is strong resistance so that would be the target.  The negative divergence is very strong so this places the ascending triangle patten in the questionable department. If you see the SPX at 1418, 1419, 1420, however, 1429 is on the way. The traingle pattern will fail and become nullified if price cannot move above 1418.

Nancy Pelosi is talking as this missive is typed. She delayed her brief talk until after market hours since she did not want painted with any of the market stink.  This sausage-making soap opera drama continues tomorrow. 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.