Charts I’m Watching: Nov 7, 2014

SPX came withing 0.61 of closing the gap we were watching Tuesday before the downtick prevention team screamed into action.

2014-11-07  SPX 5 0500

Since then, it’s been a steady march higher — with USDJPY/NKD providing most of the boost.  NKD is still languishing below the .886 Fib, suggesting more downside ahead.  But, the chart pattern indicates a good chance of a breakout to the white .786 or .886 first.  I believe TPTB are keeping this card in reserve and will play it in the event of any undesirable downside moves.

2014-11-07 NKD v ES 15 0500USDJPY, likewise, seems stuck at the 2.24 extension, but seems to have found support at the 1618.  Like NKD, a breakout is just a key stroke away.

2014-11-07 USDJPY v ES 15 0500

And, that pretty much sums up the markets lately..  We (sometimes) get a burst or two of “honest” market movement in the opening minutes, after which the central planners and their hedge fund lackeys determine which way stocks will go for the rest of the day — with USDJPY, NKD and VIX as their primary tools.

VIX is at a critical support level, the .886 of the rise from 11.52 to 31.06 beginning on Sep 19.   It tagged this Fib on Oct 31, and closed slightly below it yesterday.  A sustained push below 13.75 would be bullish for stocks.


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