This page has been archived and commenting is disabled.

S&P Key Support Level: 1284; After That It Is Rough Sailing Until 1252

Tyler Durden's picture




 

As ES tumbled to 1285, there is a good reason why it was instrumental to halt the drop because should the 200 DMA in the S&P get taken out, at about 1284, then say hello to the next support which is at the March and June swing low trendline of 1258. Then again, in order to get QE3, which by the way is the goal here once all the smoke and pizza boxes clear, the market does need to plunge as has been warned again and again. Alas, it has to drop by another 20% from here. So, all those who traditionally keep buying the dip in advance of anticipated Fed intervention sooner or later will have to eat their losses. And considering that America may be bankrupt as soon as Tuesday unless the Fed sells its gold, it will certainly be sooner. So as Asian dealers scramble, and Europe wakes up (can UniCredit make it a trifecta of trading halts? Why of course), with America to follow thereafter realizing its Q2 GDP was just 1.7% (and to be revised to 1.4% in 2 months), the race for QE3 finally is on with just one month until Jackson Hole.

h/t London Dude Trader

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 07/28/2011 - 23:49 | 1503270 Rahm
Rahm's picture

Geronimo!!!

Thu, 07/28/2011 - 23:52 | 1503279 flacon
flacon's picture

TD - Could you make the chart just a little bigger? Thanks!

Thu, 07/28/2011 - 23:55 | 1503291 Goatboy
Goatboy's picture

Tried clicking on it?

Fri, 07/29/2011 - 00:02 | 1503315 flacon
flacon's picture

Well now it's clickable. Thanks! 

Fri, 07/29/2011 - 00:49 | 1503440 eurusdog
eurusdog's picture

CNTRL + Mouse up and down works too.

Fri, 07/29/2011 - 00:50 | 1503441 Ahmeexnal
Ahmeexnal's picture

Meanwhile, huge gaping cracks appear within the Libyan "rebels".

Their commander in chief was shot dead by another "rebel" tribal faction: the MI6.

http://www.telegraph.co.uk/news/worldnews/africaandindianocean/libya/866...

Can't wait for the markets to price this in.

Fri, 07/29/2011 - 00:55 | 1503454 Burgess Shale
Burgess Shale's picture

I didn't see this coming: Boehner is the one who must fall on his sword.

The only solution is compromise with the dems.

Poor Boehner. Now I know why he cries.

His career is finished.

As a politician.

Fri, 07/29/2011 - 01:17 | 1503494 Ahmeexnal
Ahmeexnal's picture

Don't feel sorry for him.

His carrer at GS is just starting.

Fri, 07/29/2011 - 03:53 | 1503666 slewie the pi-rat
slewie the pi-rat's picture

he's a troll, a_x, identical copies on diff strings.

see how unrelated it is? 

see ya!

Fri, 07/29/2011 - 09:34 | 1504154 indygo55
indygo55's picture

Hre was an ex-general and very close to gadaffi. Many in the ranks didn't trust him and they are celebrating in the streets. There will be several young and able patriots to fill his shoes.

Fri, 07/29/2011 - 09:34 | 1504155 indygo55
indygo55's picture

Hre was an ex-general and very close to gadaffi. Many in the ranks didn't trust him and they are celebrating in the streets. There will be several young and able patriots to fill his shoes.

Fri, 07/29/2011 - 09:34 | 1504156 indygo55
indygo55's picture

Hre was an ex-general and very close to gadaffi. Many in the ranks didn't trust him and they are celebrating in the streets. There will be several young and able patriots to fill his shoes.

Fri, 07/29/2011 - 09:35 | 1504163 indygo55
indygo55's picture

sorry about the multi replies.

Fri, 07/29/2011 - 09:35 | 1504164 indygo55
indygo55's picture

sorry about the multi replies.

Fri, 07/29/2011 - 09:35 | 1504165 indygo55
indygo55's picture

sorry about the multi replies.

Thu, 07/28/2011 - 23:51 | 1503275 I am Jobe
I am Jobe's picture

BTFD. Guns and Ammo and food. Let the hunt begin. F this shitz.

Thu, 07/28/2011 - 23:55 | 1503293 Id fight Gandhi
Id fight Gandhi's picture

The debt ceiling is trashing the dollar enough. I don't think anyone can afford the hyperinflation from qe3.

Fri, 07/29/2011 - 00:00 | 1503309 SparkySC
SparkySC's picture

Hey ZH/Tyler/etc- have you gotten enough ads placed on every web page yet?
I think you can squeeze 4 or 5 more in before we all get fed up with this crap.

 

 

Fri, 07/29/2011 - 00:05 | 1503323 Id fight Gandhi
Id fight Gandhi's picture

Lol. Kind of funny when they're all the same banner ad but different sizes. Big brother google caches alll your searches so the ads start popping up from key words in your searches.

Search for porn, get meet singles, search for cars, get car ads etc...

Just use firefox and an ad blocker.

Be cool and donate to zh to keep it going though.

Fri, 07/29/2011 - 00:47 | 1503435 eurusdog
eurusdog's picture

Damnit, I hope my wife stays off ZH then!

Fri, 07/29/2011 - 00:09 | 1503334 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

You must be the big donor around here then.  We salute you.

Fri, 07/29/2011 - 00:16 | 1503354 cosmictrainwreck
cosmictrainwreck's picture

the boy needs to learn the more subtle dynamics of web marketing, eh?

Fri, 07/29/2011 - 00:33 | 1503400 B-rock
B-rock's picture

I use Chrome and I don't see a single ad. 

Fri, 07/29/2011 - 01:25 | 1503500 wisefool
wisefool's picture

Hate the player not the game.

Are the DOW futues really supposed to be down 80+? Asian markets are open and supposed to tank this crap.

http://www.sgxniftydowfutureslive.com/index_files/DOWFUTURES.htm

Fri, 07/29/2011 - 06:57 | 1503778 Bob Paulson
Bob Paulson's picture

yeah SparkySC, being rewarded financially for all the work you have done creating a great website is wrong.

oh the audacity of ZH for wanting to be remunerated to keep the site alive during a depression!!!

Fri, 07/29/2011 - 00:01 | 1503311 AmazingLarry
AmazingLarry's picture

When I rode dirt bikes as a kid we called that a "triple." Don't case it, see you at the bottom.

Fri, 07/29/2011 - 00:02 | 1503313 Id fight Gandhi
Id fight Gandhi's picture

Since qe3 is "all about jobs" I found it disturbing reading a story about how companies are clearly discriminating against the unemployed.

They want to hire employed people. I guess I see their point. Even if the unemployed went into debt to get a new degree or training they're still not wanted as they have no real life experience.

This new america sucks.

Apple sits on 70 odd billions in cash from sourcing all it's work out to china. Guess it's time to over pay for some dot hype video service or social network and piss it away. Give out some big bonuses for that.

Fri, 07/29/2011 - 00:02 | 1503317 Dr. Engali
Dr. Engali's picture

Looks like they will be issuing the new Banzai banana republic bucks soon the way the dollar is dropping.

Fri, 07/29/2011 - 00:04 | 1503319 newbee
newbee's picture

AAaaaahhhhh ... I love the smell of napalm in the morning.  It smells like ...  Victory!

Fri, 07/29/2011 - 01:26 | 1503503 Worker Bee
Worker Bee's picture

One day...this war is gonna end.....

Fri, 07/29/2011 - 08:18 | 1503869 CoolClo
CoolClo's picture

And with it the Private "Fed".

Fri, 07/29/2011 - 00:04 | 1503320 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Then it is time for the President's Working Group to come into the markets.  Here fishy, fishy!

Fri, 07/29/2011 - 00:05 | 1503324 caerus
caerus's picture

game over...thanks for playing...enjoy the home version sheeple...

Fri, 07/29/2011 - 00:07 | 1503331 JackES
JackES's picture

continuation pattern. 

new all time high ahead. mark my words, still hold 50% IRA in US equity, will add once things get clear.

Fri, 07/29/2011 - 01:42 | 1503525 caerus
caerus's picture

I'll see your continuation pattern...and raise you a chinese bullet train to hell...

Fri, 07/29/2011 - 04:46 | 1503704 slewie the pi-rat
slewie the pi-rat's picture

would you guys like some brie?

Fri, 07/29/2011 - 09:11 | 1504065 snowball777
snowball777's picture

You misspelled ASS, Jack.

Fri, 07/29/2011 - 00:12 | 1503342 Taku
Taku's picture

Seriously. Does this look like a credit profile you would lend to?
http://www.inquisitr.com/126949/debt-ceiling-dilemma-u-s-stocks-could-facing-beating-this-week-with-no-debt-plan-in-place/

If you maxed your credit card, then amazingly got an increase on your limit, rinsed & repeated, and KEPT your FICO score perfect, you'd be (TAKE A GUESS).

Fri, 07/29/2011 - 04:48 | 1503709 slewie the pi-rat
slewie the pi-rat's picture

U-S-A!

U-S-A!

Fri, 07/29/2011 - 00:14 | 1503350 Taku
Taku's picture

(RE above) Just wanted link to graphic not article

Fri, 07/29/2011 - 04:54 | 1503710 slewie the pi-rat
slewie the pi-rat's picture

uhnnn... ...slewie?

no...?...

...charles ponzi!

Fri, 07/29/2011 - 00:26 | 1503380 Subprime JD
Subprime JD's picture

Picture this scenario: its August 3rd and no agreement has been made. SPX is trading at 1230's, a good 110 point drop from recent highs. Bond yields start creeping higher and the DXY continues to slip into the 72 range. At this point with markets following the sink down to the drain but without the benefit of a rising dollar, congress panics and the tea party holdouts get co-opted into voting for "any" bill to get the job done. This worse the market beating the higher the odds of a vote.

 

Eventually something passes and it gets raised. However, if it is a short term raise (8 months) the markets will be uneasy about the US finances. Gone are the days when they could raise the debt ceiling by 2.3 trillion without anyone really taking notice. America is now like Greece, needing a debt raise every few months with the politicians screaming and kicking along the way. Its incredible how our "borrowing" hedge lasted for only 3 years.

Glad I have my gold, silver, butane, cash (dollar, yen, euro) medical supplies, flour, beans, and olive oil. The prep list continues to grow.

Fri, 07/29/2011 - 00:35 | 1503404 geminiRX
geminiRX's picture

This is all theatrics to get someone in congress to blink first. A deal will get through soon enough. I think PMs will get a bit of a beating when the deal passes.....but I have cash waiting for that moment.

Fri, 07/29/2011 - 01:01 | 1503462 Peter K
Peter K's picture

Not exactly. Once again, the US takes in tax receipts of app. 180bn/mo. Debt Service costs 35b/mo. The US does not have a debt problem. YET. What the US has is a spending problem. US Gov. spending is running at app. 300b/mo. And that is the issue that is being addressed by the Tea Party folks;)  

Fri, 07/29/2011 - 01:31 | 1503515 Subprime JD
Subprime JD's picture

Incorrect my friend about the ability of the US to service its debt. Although interest expense is 350 billion per month, roughly 2.7 trillion dollars worth of treasury securities are due within the next 12 months. Much of US debt is front ended in short term paper so the game has been to borrow big money with short duration with ultra low yields. Treasury has 90 billion in maturities due on Aug 4th alone, with more big payouts week after week.

US must keep raising debt size in order to service existing debt. The true definition of a ponzi.

Fri, 07/29/2011 - 00:36 | 1503406 vast-dom
vast-dom's picture

head and shoulders analysis confirms a nice S&P drop any day; maybe even starting tomorrow Black Friday the 29th of July, 2011. Watch out people it's gonna be a grin shit giggles inducing ride!!!! Yeeehaaaw!!!!!!!!!

Fri, 07/29/2011 - 00:57 | 1503456 Subprime JD
Subprime JD's picture

Trading this market especially right now is a gamble, pure and symple. Just know that the house has the tools to trade on the information much quicker than you can. So by the time the move happens the HFT's will either be buying or selling faster than you can press the purchase order. Now if you guess which way things are going to go and simply hold that position for a swing trade then sure you can make or lose money. Just know that its a gamble and that no technical analysis will help you at this point.

Fri, 07/29/2011 - 00:42 | 1503421 eurusdog
eurusdog's picture

Very interesting how Gold and Silver are selling off tonight. Is it possible a total flight to cash is happening? I have MT support in Silver around 34.50-35.50 I doubt it gets that low though.

Fri, 07/29/2011 - 00:51 | 1503444 geminiRX
geminiRX's picture

as of now I still have gold at 1615 us.....not much of a drop?

Fri, 07/29/2011 - 00:54 | 1503451 Peter K
Peter K's picture

Oh no, Ben's QE bubble is going to burst. What to do?

Fri, 07/29/2011 - 01:02 | 1503463 Bansters-in-my-...
Bansters-in-my- feces's picture

What American Gold.???

Fri, 07/29/2011 - 01:04 | 1503469 glenlloyd
glenlloyd's picture

really...is it only one more month until Bernank is in Jackson's hole?

Fri, 07/29/2011 - 01:10 | 1503477 cosmictrainwreck
cosmictrainwreck's picture

I'm guessing the invitees are thinking a month is a loooong way out....

Fri, 07/29/2011 - 01:28 | 1503501 BaBaBouy
BaBaBouy's picture

If their so BROKE, Where the fuck are they getting the Billions to keep manipulating the GOLD Price  down ???

 

Just today the GLD ETF added 18 Tonnes! How the fuck else can the POG stay pinned down no real change???

 

We should be at $2849. Right about now...

Fri, 07/29/2011 - 01:30 | 1503512 redarrow
redarrow's picture

Wow Moody's just placed Spain rating on review for downgrade.

Fri, 07/29/2011 - 01:36 | 1503520 BaBaBouy
BaBaBouy's picture

This is spirraling, Massive paper fiats printing to follow soon, Round the Globe  ...

Fri, 07/29/2011 - 02:02 | 1503556 wisefool
wisefool's picture

Somebody go wake up Mao and tell him to buy shit before the DAX open.

Fri, 07/29/2011 - 09:12 | 1504070 snowball777
snowball777's picture

He's too busy playing with trains.

Fri, 07/29/2011 - 03:42 | 1503635 qing
qing's picture

removed content (spam)

Fri, 07/29/2011 - 03:47 | 1503662 slewie the pi-rat
slewie the pi-rat's picture

be a shame if it dropped like the silver chart in may, wouldn't it?

it's not overpriced, is it? 

Fri, 07/29/2011 - 03:56 | 1503669 The Axe
The Axe's picture

The skkynet computers play this game to well, so many times, since march 2009, cleanout the stops, and march higher..

Fri, 07/29/2011 - 04:15 | 1503680 FoieGras
FoieGras's picture

10y TIPS breakeven inflation is 2.2%+ ... Way higher than the 1.4% when QE2 was started. Inflation expectations are currently in line with the 5y average. The Fed has absolutely no reason to launch QE3 anytime soon.

Fri, 07/29/2011 - 05:57 | 1503750 qussl3
qussl3's picture

Kill equities drive it all into bonds.

Even better kill the Spanish and Italian funding markets and let the liquidity slosh into USTs.

EUR is being set up as the mark, the ECB either prints or Germany gets it.

Fri, 07/29/2011 - 07:23 | 1503800 Paul Thomason
Paul Thomason's picture

It's 1275 actually.

Fri, 07/29/2011 - 09:23 | 1504103 snowball777
snowball777's picture

It's 1152 actually.

Fri, 07/29/2011 - 09:29 | 1504127 indygo55
indygo55's picture

He was an ex-regime general who many within the ranks didn't trust. He was "too" close to gadaffi in the past and that spells trouble in that part of the world. Many rebels are actuall happy about it and are celebrating. There are plenty of young and able patriots to fill the void.

Fri, 07/29/2011 - 09:31 | 1504143 indygo55
indygo55's picture

He was an ex-regime general who many within the ranks didn't trust. He was "too" close to gadaffi in the past and that spells trouble in that part of the world. Many rebels are actuall happy about it and are celebrating. There are plenty of young and able patriots to fill the void.

Fri, 07/29/2011 - 09:32 | 1504145 indygo55
indygo55's picture

He was an ex-regime general who many within the ranks didn't trust. He was "too" close to gadaffi in the past and that spells trouble in that part of the world. Many rebels are actuall happy about it and are celebrating. There are plenty of young and able patriots to fill the void.

Fri, 07/29/2011 - 11:06 | 1504846 tltblog
tltblog's picture

And there also goes the massive head-and-shoulder pattern. Let's see if it holds...

Wed, 09/14/2011 - 03:55 | 1667159 chinawholesaler
chinawholesaler's picture

Wholesale First Aid Kit
Safety Suppliers

Bottle Opener
Wholesale Vase
Wholesale USB Flash Drive

Wholesale Glasses
Medicine Instrument
Wholesale Calendar

Wholesale Stapler
Gift Box
Tape Measure

Wholesale Golf Products
Wholesale Badge
Inflatable Products

Wholesale Memory Card
Book Light
Wholesale Bedding

Patient Care Products
Wholesale Frisbee
Wholesale Glass

Wholesale USB Products
Wholesale Furniture
Lighting Products

Wholesale Bangle
Business Gift
World Cup Products

Wholesale Tag
Wholesale Ruler
Wholesale Flashlight

Eye Mask
Wholesale Cap
Voice Recorder

Business Gift
Wholesale Fan
Wholesale Tableware

Personal Safety Products
Wholesale USB Flash Drive
Wholesale Cap

Writing Instrument
Wholesale Dartboard
Home Appliances

Wholesale Scale
Wholesale Directory
Lunch Box

Discount Wholesaler

Do NOT follow this link or you will be banned from the site!