Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Wednesday, May 30, 2012

Premarket Euro Zone News Smackdown 5/30/12

Stock Market Technical Analysis

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Premarket this morning there was a market smackdown from the bad news coming out of the euro zone as the world is learning that the deterioration is happening more quickly.  As WallStreet having sent in across the board entry markers for all the mega cap stocks yesterday, they awoke this morning to a nasty slap in the face which I know breaks the hearts of most traders out there (lol).  Nonetheless, I checked every mega cap stock that had entry markers yesterday and there was a long list of them and found that there were no reversal exits in any of them.  AAPL continues to build steam from last Wednesday's entry date.   Worth noting is that the PPT sent through three million plus blocks at $1.50 above the current trading price on the SPY during the last hour of trading today.  Normally when they decide to take action they will send these markers through after the bell.  One has to assume they are really trying to emphasize to as many people as possible that they are determined to keep this rally from failing.

In the four charts tonight, the 30 minute bars chart of the UUP gapped up at today's open and climbed throughout the day but never actually got above the lower line of the red channel.  To make things worse we now have a confirmed shadow channel shown with the pink line that will now have to be breached in order for the market sell off to truly end.

In the bottom left corner, the daily chart of the S&P 500 with today's bar we fell back down out of the three year brown line mother channel but climbed back up some late in the day to close virtually right at the brown line. 

On the right side top chart, the daily VIX Futures and the bottom chart is AAPL, both are powerful inversely traded forces that are both showing a lift upward at the same time which indicates the rising tensions on the market as they try to make this rally go in spite of the rapidly deteriorating euro zone.  With the PPT sending through its intention markers during market hours there will be a lot of anticipation with what they can do with the market tomorrow and the cards will be in their favor as the advance decline went out at the floor, -4421. 

The market could have a powerful break in one direction or the other soon as there are two week wide triangles showing on the sixty minute charts of the VIX and VXX now and they look poised to break upward which would sink the market if they do.  Which is obviously why they are putting a full court press on AAPL right now and WallStreet is showing its intentions with its entry markers and the PPT took the cloak off today and sent their intention markers through before closing so that everyone could see them.  We could see big moves in both directions before this is resolved. 

Alan