Nothing new since yesterday’s chart.  Retail sales disappointed, Portugal’s banking crisis is worsening, etc.  The futures shook it all off because Yellen is testifying today, and nothing else matters.  If it’s like past testimonies, the Q&A will reveal nothing new; and, if there’s any kind of sell-off, it will be aggressively bought via USDJPY ramping and VIX pummeling.

continued for members…

FWIW, ES reached its white .886 while SPX has to reach 1981.86.  Both are comfortably back above their SMA10s (ES conveniently backtested at 2AM.)

UPDATE: 10:50AM

SPX has reached its .500 and has nearly closed the gap from last Friday.  ES has nearly completed a Crab at the red 1.618 (1961.69.)  This would be a good place for a bounce if it’s coming.

UPDATE:  12:15 PM

SPX not only closed last Friday’s gap, but tagged its SMA20 as well.  NKD and USDJPY reached support, but have yet to rally strongly.  And, ZN and TNX are still waffling.  But, stocks are pointed higher — with the next major goal the 2000 level on ES.  Not the IH&S targets it, as does the white 1.618.  Timing looks to be next Monday or Tuesday if it’s to occur inside the rising purple channel.

The tricky part is that it’ll have to contend with USDJPY’s resistance: the 10, 20, 50 and 200 day moving averages are all arrayed between 101.7 and 101.93.  Look for overnight ramp jobs galore, with USDJPY resetting after the close each day.

The downside case is clear: the Fed’s tapering and  Yellen’s admission that the economy sucks (my word) could unravel things any second.  But, TPTB have so far deftly engineered a melt-up that has buried every bear that dared to defy it.  Last Thursday’s reversal at the TL from mid-April reinforces its continuation.