Volume Surges To Year's Highest, As 20 DMA Support About To Be Tested

Tyler Durden's picture

The technicians out there will be salivating over the action in the ES today, which has continued to drip all day, and is now a point away from the 20 DMA at 1,311.30. In this relentless meltup, this moving average has been breached just several times since Jackson Hole. Yet the one to keep an eye out for is the 50 DMA, which has been a key support over the past 6 months. Should that level be taken out (1,282), the next level is 1,234, after which there is no support for a long, long time. Yet the most, or least for the cynics, surprising observation is that today's ES volume is about to hit the highest of the year, taking out the last January surge... which also was on major downswing. At least the banks made some money on equity commission trading, although with the Treasury curve flattening rapidly, that may not be much of a consolation.

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raya123's picture

It is clear from the market action in these last minutes that the FED / POMO cannot stop a market that wants to move downward.

Ragnarok's picture

Remember that the Fed wants lawmakers to beg for QE3, so a modest controlled decline is permitted.

Dr. Richard Head's picture

Damn skippy. The markets are no longer a tool for investment, rather a tool for confidence/fear. Just think Audit the Fed and Bernadict Sanders of VT.

pragmatic hobo's picture

QE3 will likely mean the revolution lands on US shore.

Watauga's picture

What "revolution"?  "The revolution" lands on US shore--what is that?  Seriously, totalitarian regimes that have bilked their nations for decades experience unrest fostered by Islamists and American weakness and, all of the sudden, because of just another stupid movement toward unpayable debt, "the revolution" is going to "land on" our shores?  Maybe, just maybe, the disagreements about unions, government debt, government obligations, pensions, benefits, jobs, and so forth that we are seeing in Wisconsin and Ohio will result in some movement within the political system to make changes, but "revolution" landing on our shores?  Come on.

raya123's picture

In the face of selling pressure, the intra-day POMO pushes have been good for no more than 20 to 50 points.... only about 30 today into the close.  That's not going to get the FED very far in controlling what could become an ugly decline.

Quinvarius's picture

It is clear from the market action in these last minutes that the FED / POMO cannot stop a market that wants to move downward.

 ....For at least a few minutes

Clockwork Orange's picture

@raya, who says the $8B pomo has to be used to go long?!  the TBTFs have collected all the longs they want.  today they wiped out 2 1/2 weeks worth of longs.  they held the market right where they wanted it thru feb opex on friday. now, by smashing a market they wouldn't let drop by more than 3 pts for weeks, they can collect some shorts that they can wipe out for the march opex.  monopolistic, unchecked scumbags.

Cognitive Dissonance's picture

There is plenty of support all the way down. It all depends upon how many FRN's Ben wishes to print, then burn. This will all come down to a test of wills.

Will he print some more or will he let it burn down some more.

william the bastard's picture

Has this thesis been run by E-Erian for confirmation yet?

jus_lite_reading's picture

No worres. Kamikazi Ben will step in and save the day with a few more billion. Oil going higher is no problem for Dr. Deficit. He can save the world from total financial collapse in 15 minutes.

Clockwork Orange's picture

i hope someone somewhere has 15 minutes alone with ben when this thing blows.

doomandbloom's picture

yumm...lovin these dips..!

Sophist Economicus's picture

If this market breaks the 50 day before May, I'll eat that flying shoe!!!!



Dr. Richard Head's picture

May I suggest the port wine as a chaser.

Great Unwashed's picture

It's 3:55 and S&P down about 29 points. Any chance for a green close? You can do it!

Cleanclog's picture

The Bernank is losing control.  Very very scary.  And scarier for Obama. And all the governors, senators, bank presidents, and powers that have just looked the other way from the people for too long.  Hoping for peaceful settlement, but not too optimistic on that.  Urgh.

poor fella's picture

HEY!! whatever....  Bernankenstein better fix the NFL or the U.S. is going to make Libya look like a grammer school playground gone a little rough patch.

NotApplicable's picture

Nobody will care though until they flip on the tube and find that figure skating is the top televised sporting event of the day, and it's not even an Olympic year!

So, I'd say we've got until the final out in the World Series before things get ugly.

duo's picture

egg-friggin-zactly.  No NFL in the fall and you start eating away at "normalcy bias". I shudder to think what no "Idol", or "Bachelor" would do to disrupt society.

So far the 79 cent beef taco going away at Taco Bell hasn't caused any riots.

poor fella's picture

Whoozawhaddahfck! No more 79 cent tacos - I will punch somebody in the head!! That's gonna spill over, unless, we're still able to buy obscene amounts of bean burritos for ten bucks...  might let it slide.

Hahaha, NoAppliccasiones! If it's ice skating - so be it - is there a good site to get the spreads? Are investment opportunities available such as derivatives on whether a skater lands a triple?!?!? Let's make some funny money sonny before goldman gets its bloody beak pounded into the wide open alpha profits of fabulously hypnotic flaming fabrics of body-hugging profits leaping airborn like unfettered FRN confetti from here to Times Square!!!!   weeeeeeeeeeeeeeeeeeeeeeee

andybev01's picture

So instead of bread & circuses we have tacos & football?

poor fella's picture

noooooooooo! - burritos, skating, and skating burritos. It's the new Bud Bowl.

morph's picture

better vol, avg. by old standards.

DoChenRollingBearing's picture

Radio talk show host Todd Schnitt is selling ALL stocks at the close today, going to 100% cash.

trav7777's picture

Pt and Pd are getting totally smashed...a worrisome sign if you are long

DoChenRollingBearing's picture

Yes, trav.

Pt and Pd are for optimists, in that they would likely do very well if world car production goes up.

unununium's picture

They are very sensitive to the market/economy.  Compare their performance in late 2008 to Au/Ag.

PeterSchump's picture

Down markets in rising volume....hmmm.  Have to go with the only strategy that has worked for the last two years.  BTFD.

PeterSchump's picture

I would otherwise agree, but it is Ben buying all of the monkeys with his endless fiat.  ...unless yesterday's line on Euro CNBC signalled the (at least real and not nominal) top for the time being by stating "Stocks attracting inflows due to inflation!"

Hephasteus's picture

NYSE. How the electronic mall of america turned into the electronic fall of america.

RobotTrader's picture

Lots of stuff cracked big today:



Platinum and Palladium




Energy stocks

Most of the IBD Top 50

lieutenantjohnchard's picture

a while back the old catfish mouth infamously said all rosie had to do to make a fortune was buy at the bottom at 666 and ride it to the top. any old fool could do it, just like the catfish mouth.

so might one infer the catfish mouth is calling a top, because it's just as easy to make a fortune by selling the top, and buying back at the next 666 or whatever low level. any old fool can do it, right catfish mouth.

btw: i notice gold, silver and oil aren't on the catfish mouth list. gentleman jim sinclair sends his regards to you catfish. ditto max keiser, who you might be interested to know is still in business, contrary to your prediction.

RobotTrader's picture

Might have a trend change tomorrow if there is more follow through selling on the HPQ warning.

I'll be ready to go long big into SH or DOG if that happens.

You better hope that gold doesn't pull a wheat or copper move within the next few days if "risk off" algos sell anything and everything.

lieutenantjohnchard's picture

no worries. i have an investing thesis predicated on my world view, and timing the market is not my bag.

duo's picture

The Bernank can only crash commodities by taking the rest of your precious market down with it.  Are you prepared?

SpeakerFTD's picture

12212 DOW close

12/21/12  Apocalypse

Hmmm, foreshadowing ala 666 S&P low?

[Yeah, it's a stretch, but I'm bored]

disabledvet's picture

i thought for sure we'd have a double dip last fall and boy was i wrong.  it's not Ben that's moving our economy forward but extraordinary General and Admiral "ship."  I actually think Bernanke has done far more harm than good by forcing the "atoritiees" to take their eye off the ball and actually believe in his "lead to gold" theory of "debt printing" as growth.  the jury is still out...i mean the word "jury" when i say it...if what Bernanke has done is the problem and not just neutral.  Clearly it is inarguable that what he has done is not positive.  The war expansion ends that theory.

HedgeFundLIVE's picture

how many ES traders are actually watching the 50 DMA?  they said the same thing about 20 DMA etst, but we broke that like butter last time.



SwingForce's picture

Wholly Hannah BTFD

John Law Lives's picture

$4 gasoline coming to a pump near you?


The Ben Bernanke says QE works.  I am sure the bankers and oil sheikhs just love him.

Id fight Gandhi's picture

BTFD comes out tomorrow right? Stories of Libya is old news.

Some fucker on shitnbc was saying oh keep buying, where else you gonna out your money. Erin said, gold? He laughed and said oh that's just speculation not investing.

barbarika's picture

As I ate lunch today, i noticed that "chicken piccata" at the workplace cafetaria used to comprise of a whole chicken breast (with both halves) for $4.49 until last week. Today, magically it became 50% of the previous size with the same price!! I am still hungry :-( I don't what QE3 will do to my favortie chicken piccata.

barbarika's picture

As I ate lunch today, i noticed that "chicken piccata" at the workplace cafetaria used to comprise of a whole chicken breast (with both halves) for $4.49 until last week. Today, magically it became 50% of the previous size with the same price!! I am still hungry :-( I don't what QE3 will do to my favorite chicken piccata.