The 30 minute bar chart of the SPX futures illustrates that the 2 day cycle is in a sideways up phase (an up phase that doesn’t go up), and the 5 day cycle should be bottoming. That’s a perfect setup for an “anything can happen” reaction to Bernanke’s dog and pony show tomorrow afternoon, where no one will dare ask him what effect his zero interest rate policy is having on elderly Americans who saved all their lives, played by the rules, and don’t take risks.
The FOMC announcement tomorrow is scheduled for 12:30 PM ET. The Bernankenstein press conference is at 2:15. With the 5 day cycle due to be early in an up phase, the bias should be to the upside for these events. If the market goes the other way, things could get very ugly fast. There’s nothing more bearish than a breakdown from an oversold position.
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