Massive Fed Credit Is Resulting In A Lot Of SPX (S & P 500) Rollover Action Since 4-18
Massive Fed credit (see http://www.newyorkfed.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE) is resulting in a lot of SPX (S & P 500) rollover action since 4-18, due to very strong index related program buying, see http://stockcharts.com/charts/gallery.html?%24spx.
It looked like yesterday was a short term Wave 1 cycle high in dramatic rollover mode versus 4-18's cycle high (large bearish spikes on yesterday 4-30's daily and intraday charts), see the 5 day intraday candlestick chart at http://finance.yahoo.com/q/ta?s=%5Espx&t=5d&l=on&z=l&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c, and, without today's massive $30 Billion in Fed credit it probably would have been.
A year ago $15 Billion or less on punch spiking Thursday was the norm, now it's more like $25 Billion or more on average. Tuesdays have been huge recently and they used to be typically/almost always modest, around $2-4 Billion.
It's not unusual for a large usually brief Wave 5 spike move to occur (put the final punctuation mark on an upcycle) after it looks like a cycle has peaked, which is probably what happened today with SPX (S & P 500). The short term Wave 1 upcycle since 4-15-08 probably finally peaked today, in dramatic rollover mode versus 4-18-08's cycle high, see http://stockcharts.com/charts/gallery.html?%24spx.
.......http://www.JoeFROCKS.com/ .
NEM XAU HUI
It looked like yesterday was a short term Wave 1 cycle high in dramatic rollover mode versus 4-18's cycle high (large bearish spikes on yesterday 4-30's daily and intraday charts), see the 5 day intraday candlestick chart at http://finance.yahoo.com/q/ta?s=%5Espx&t=5d&l=on&z=l&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c, and, without today's massive $30 Billion in Fed credit it probably would have been.
A year ago $15 Billion or less on punch spiking Thursday was the norm, now it's more like $25 Billion or more on average. Tuesdays have been huge recently and they used to be typically/almost always modest, around $2-4 Billion.
It's not unusual for a large usually brief Wave 5 spike move to occur (put the final punctuation mark on an upcycle) after it looks like a cycle has peaked, which is probably what happened today with SPX (S & P 500). The short term Wave 1 upcycle since 4-15-08 probably finally peaked today, in dramatic rollover mode versus 4-18-08's cycle high, see http://stockcharts.com/charts/gallery.html?%24spx.
.......http://www.JoeFROCKS.com/ .
NEM XAU HUI
Labels: SPX
posted by Joe Ferrazzano at
10:04 AM
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