Keystone's UPS Weekly Chart with 20 and 50 MA Cross Indicator Bull Flag Overbot Negative Divergence

Shipping is a key indicator for global economic health, that is why UPS and FDX are very important stocks to watch.  The red circles show trouble with the 20 MA falling under the 50 MA. Chairman Bernanke must watch something similar since he ran to the rescue with Operation Twist in late summer 2011 and the ECB chimed in with the LTRO's in the Fall. This stopped the slide into oblivion that was about to occur after the August 2011 crash.  The markets are simply saved and pumped with Fed stimulus and do not react according to fundamental analysis anymore.  The 20 just managed to sneak back above the 50 so watch this closely during the weeks ahead.  Draghi's OMT and Bernanke's QE3 Infinity were the pumps July into the September market top but UPS was not impressed and markets did sell off. Once the markets sniffed the QE4 Infinity and Beyond, the markets recovered and have ran higher ever since. Look at the obscene rally purely due to Fed pumping and nothing else.

The catch is that the red lines clearly show negative divergence and overbot conditions. UPS is clearly at a top not a bottom. The yellow lines show a two-leg bull flag, leg one is 59 to 78, 19 points, then the sideways consolidation move, drifting a slight bit lower, forming the textbook bull flag, then the second leg starts at 68-69.  Thus, the target is 86-88. The high is 84+, that can be considered close enough for government work for the bull flag. The slight bit of momo in the money flow could create a final push to tease a couple more points out but overall, the bull flag and rising red wedge says this is nearing or at a top right now. The bulls keep getting all the breaks. Watch to see how FDX adn UPS trade over the next couple weeks. 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.