Charts I’m Watching: Jun 9, 2014

SPX/ES topped their 1.618s at the close Friday…

2014-06-09-15 in 0605

… thanks to an increasingly common vicious VIX bang in the final minutes of trading.  Zerohedge put out an interesting commentary tying it to Citadel and the Fed.  Don’t have any details on this, but where there’s smoke…

2014-06-09-VIX 1 min 0600

Perhaps it’s just coincidence, but murdering the VIX like this got SPX barely back over its 1.618 (1948.52) in the last 30 seconds of trading on Friday.  A close north of an important Fib level damages the harmonic pattern and, in this case, also negated a tiny H&S pattern that pointed a whopping 3 points lower.

2014-06-09-SPX 1 min 0800

Bottom line, folks, it’s an all-out assault on any bearish pattern that pops up.  St Louis Fed President Bullard was quoted this morning as saying that the Fed “shouldn’t be intervening all the time” in the markets.

A careful reading of the remark would indicate that even he believes it should be intervening some of the time.  As in Japan — where the BOJ is directly purchasing equities with freshly printed yen — intervention at any time renders the market no longer a market, but a scripted outcome.

The Nikkei reached the .886 we were watching – several times.  Keep an eye on the little white channel, as a breakout or breakdown will likely determine the next major moves for US stocks.  Sure it’s ridiculous, but it’s been working.

2014-06-09-NKD 60 0600

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