SP 500 and NDX Futures Daily Charts - What Do You See That Frightens You?

"Peter. Verily, verily, I say to you, when you were young, you dressed yourself, and walked where you liked: but when you are old, you will stretch forth your hands, and another will gird you, and carry you where you would not wish to go."

Since the adults all seem to be leaving Wall Street early today to get a head start to the Hamptons, I will just post the charts as they are now and catch up on any late changes next week.

As a reminder, the US will be celebrating the 4th of July holiday on Monday.

Have a pleasant weekend.

The mighty rise and are fallen, but the word and the spirit endure.

Silver Cup and Handles Project to a Price Target of $54

I know some of you have been projecting these nested 'cup and handle' formations on your own, because several readers have sent their examples to me and have asked for comments.

My first comment is the most important and I wish you to take it to heart.

Projections such as this are not forecasts, because the chart formations in these examples for the most part have not been 'activated' and are therefore merely potential things, possibilities, lines on a page subject to a great many exogenous forces and variables, including human and institutional decisions.

Only the cup and handle 'a' on the chart below has been activated and achieved fairly quickly I might add.   We are now working on 'b' and it will not be activated unless the price of silver takes out 21.50 or so.

And then and only then if the price of silver in dollars holds that level with the kinds of retracements and pricing action one would expect to see as a confirmation of it can we say that the chart formation is active and 'working.'  And even then it could fail.

And then after that we would be watching and considering scenarios c and d.

Again, this is not a forecast because it cannot be since it is not an active chart formation.   It is a set of possibilities based on the mechanics of supply and demand and price.  And as we all know too well, these various aspects of the market can be led down a dark alley of leverage and willfulness and strangled.

Let us bear in mind that at this time the central banks, too often in concert with their associated multinational banks and camp follower hedge funds are openly engaging in market actions to move prices for the short term where they will, and that these actions are not limited to interest rates.  I hope we have moved well past this debate.

The question is how long can the financial engineers keep doing this type of 'pooling,' as the have done in the past, with assets that have ties to physical reality that tends to trump debate?   And what happens when the pool dissipates and the markets revert to longer term relationships as they always seem to do.

I will not be posting this chart on a regular basis.  But as long term readers know I keep several of these scenario charts going in the background for my own pathfinding purposes.  And that is all it is. It is a sketch of realms still unknown.  But it is nice to keep sketching out a map of where one has been and where one might be heading.

So let us consider this a diverting look into what might be possible on a slow Friday afternoon rolling into a three day weekend on which we celebrate the sacrifices for freedom of those who have come before us.

Gold Daily and Silver Weekly Charts - Hi Yo Silver!

Tony Sanders made a confoundedly interesting observation today.

"I keep hearing from anti-Brexit cheerleaders that it is about immigration. While there may be some who voted for Brexit to get their borders under UK control again, it is mostly about the big banks and who is going to bail them out. Again."

And that may be a good question for most of the beleaguered citizens of the Western developed nations to consider.

I wonder if the sado-monetarists will be as hard on the shareholders and management of Deutsche Bank as they have been on the people of Italy Greece, Portugal and Spain.

Mexico's central bank raised interest rates 50 basis points today to 4.25%, largely in a market positioned move to give a pause to the forex traders who had been players various crosses short the peso. It certainly wasn't due to a robust economy.

The British pound fell today as the Bank of England's Mark Carney suggested today that they would be back in the monetary stimulus saddle in response to Brexit.

And as you can see below we saw the first significant deliveries in Comex silver, as the July contracts come into play, which is an active month for silver and not gold.

So keep an eye on it, because except for the huge physical hoard in JPM's warehouses, physical silver seems a little on the tight side against demand at these prices historically.

The 'breakout levels' for both gold and silver are fairly easily seen on the two charts below.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - BofE's Carney Saves the End of Quarter

Today was the last trading day for the second quarter of 2016.

The Bank of England's Mark Carney pledged today to do whatever the Bank must do to support Britain's economy.

And on that accommodative note, global paper assets turned around and took some legs higher.

I am starting to think bearish thoughts here, but wish to see what stocks do when they hit the overhead support levels.

As you can see, they bounced very nicely on the underlying support. The NDX is particularly well-behaved, with the SP futures being the pivot on stock market upside interventions.

Have a pleasant evening.