What I Tell You?

I think it’s time for a little bitch slapping today. Frankly, I’m a bit puzzled by all the noise in the comment section by certain trigger happy participants who shall remain unnamed. Look guys – I mapped it out pretty nicely for everyone and although you can debate basic technical analysis until the cows come home what remains in the end is whether or not you found yourself on the right or wrong side of the tape. Let me enlighten you:

In my weekend update I made a pretty strong case for a looming reversal, and not only that but I also pointed toward 1230 (i.e. the current 100-day SMA) on the spoos plus the 80 mark on the AUD/JPY being in an almost identical configuration.

So after reading my weekend post none of what transpired today should have been of any surprise to you. If it has then please show me the charts that told you otherwise and convinced you to take the long (and painful) road this morning (especially given that the Zero has been consistently pointing down).

Alright, here’s a bit more input on the current tape for the subs:
[amprotect=nonmember] Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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Short term we need to turn here in the next hour or so – I’m not saying we WILL, but we really must otherwise we’ll find ourselves at 1175 in a jiffy. As I’m writing this there are no indications of any buying interest, thus 1170 may just be the higher probability scenario.

The weekly SPX chart is retesting the last week’s breach of the NLBL. I’m a bit split about this – even if we push back above again I would still expect some more downside in week 43 – thus officially turning the last three months into the whipsaw zone from hell. My favorite scenario – for all it’s worth – would be a push into 1250 this week, followed by a final retest of the NLBL next week. That would give us smooth cruising into the 2012 bear rape season.
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Cheers,