Charts I’m Watching: Feb 24, 2015

SPX made a minimal backtest of the red channel top yesterday as anticipated.  From our initial post:

If the .618 [in CL at 48.46] holds and the bounce is strong enough, then look for SPX to hold at the broken red channel top (and white channel bottom at 2102) coming up shortly.

CL’s .618 Fib level did hold, and the bounce was strong enough that after SPX reached our target (2103.20) low for the day, it rebounded to 2110.70.

2015-02-24 SPX 15 0635Last night, CL bounced a second time at yesterday’s bottom.2015-02-24 CL 60 0620And, USDJPY ramped higher — the better to convince us that the Fed’s dedication to higher equity prices ain’t going away anytime soon.

2015-02-24 USDJPY 60 0620Aside from that…not much going on in the markets ahead of Yellen’s congressional testimony.   Expectations are for a non-event, and the early morning trading certainly reflects that.  However, it would be a rare Humphrey Hawkins day that didn’t produce some significant price action before it’s all over.

A few other news blurbs…

And, here’s an interesting interview (aka book promo) with Dr. Pippa Malmgren, former member of the Plunge Protection Team.  Best quote:

“There is no price discovery anymore by the market; governments [are] imposing prices on the market.”

And, with that, we’ll tune in to Chair Yellen’s testimony.

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