Update - The S&P 500's Daily Chart - Old Resistance Did NOT Become a Level of Support...

Hello Traders...Here is Thursday's $SPX daily chart...

http://stockmarketchartanalyst.blogspot.com/

As I mentioned yesterday, the big question I had was since the $SPX finally broke above an old level of resistance recently, would it pull back and bounce up off the old resistance level and make it a level of support, which is quite common...

Today's action showed that did not happen, and is a fairly bearish development...



And since the index closed very close to the low of the day as this five-minute chart shows, that is also somewhat bearish...



Tomorrow's big economic reports will be Durable Goods Orders an hour before the opening bell, and New Home Sales at 10am ET...Plus, two Fed Presidents speak in the afternoon...

Happy Trading on Friday!...
zigzagman

Update - The S&P 500's Daily Chart:

Hello Traders...from the zigzagman showing today's $SPX daily chart...

http://stockmarketchartanalyst.blogspot.com/

The annotations on the chart speak for themselves, but the big question in my mind is will the old resistance level now become a level of Support, or will it fail to do so and we get the pullback I've been expecting for a while now...

A close below the old resistance line, a close below the 5 Moving Average, Stochastics breaking below the 80 line, on high Volume will signal to me that the pullback has begun...Pay attention to the Weekly Jobless Claims numbers out an hour before the opening bell (not that I believe a word the Bureau of Labor Statistics ever says)...Leading Indicators and Existing Home Sales both come out at 10am ET...

Happy Trading tomorrow...
zigzagman

The Folly Of Investing Today...

http://stockmarketchartanalyst.blogspot.com/

by Karl Denninger - Posted 2010-09-21 20:45

Investing is all about trying to determine a longer-term direction for the market such that risk and reward align in some meaningful way.

Yesterday, on Blogtalk, I stated that I was pulling all of my long-term investments that were market-related, and for an indeterminate time forward I would be only short-term trading this market.

That deserves an explanation, and toward this end, I would like to present the following 10 year weekly chart.



The regular "trace" is the S&P 500 price. The white trace is the 10 year Treasury yield as a comparative.

You need to pay attention to this.

"This time it's different" is often said.

It is almost always wrong, and believing in it will almost always make you broke.

Here's reality folks. Over the previous 10 years the TNX has never declined meaningfully without the S&P 500 following it, and declining to near or below it on a comparative basis.

The TNX almost always leads on declines too, sometimes by as much as six months.

Well, it's been six months.

In 2007, the TNX peaked in late June, after which it began a dive. The market peaked in the middle of October of that year at 1576. The decline essentially reached the comparative bottom.

Now the TNX has peaked the first week of April of this year, and is quite close to the March 2009 lows. Yet the S&P, after it took a swoon, has recovered.

Exactly as it did in 2007.

We all know what came next.

The same thing happened in 2000, when the market peaked and fell apart. Again, the TNX led. It in fact peaked almost exactly at the end of the year in 1999. Three months later "it" began.

Continued at: http://market-ticker.org/akcs-www?post=167162

Update - The S&P 500's Daily Chart - A Doji Candlestick for Today...

http://stockmarketchartanalyst.blogspot.com/

Hello Traders...the zigzagman here with another update of the $SPX daily chart...

Today's candlestick was a doji, which can mean one of two things...It can signal a reversal about to happen, or it can signal a moment of indecision, where the bulls and bears came out even on the day for the most part, even though it closed slightly down on the session...

As usual, there wasn't much activity until after the FOMC Announcement at 2:15pm ET, and then there was a quick spike up for half an hour, and then it gave it ALL back and then some over the next hour...It appears traders were pleased with the Fed decision, and then they weren't...Talk about a "moment of indecision"!...lol...

Here's a five-minute chart of today's action:



The title of this daily chart is: Where's My Pullback???...

Really!...Where the heck IS it?...This reminds me of the weekly chart the few months leading up to the highs set in late April of this year...It was like the Energizer Bunny...up, Up, UP!...No levels of support were set on the way up, and that's why it fell fast and furious back to where it all began when it FINALLY decided to go back down...

That's exactly what I see here on this daily chart...The move UP since the beginning of September is waaayyyyyyy too far, too fast and much too vertical to be sustainable, with only ONE tiny pullback on the 7th, which set up the ONLY level of support on this entire run...I wouldn't be surprised to see it fall twice as hard as it went up with the right catalyst, which is usually the case...The market usually goes down a LOT faster than it goes up...The PPT goes Long AND Short, you know?...

Today's Fed announcement needs to be digested better by traders overnight, and the surprising Housing Starts report out today showed gains in condos and apartments, not single family homes...Like we really need any more of either built, with the glut of empty units on the market already...We are spared any bogus, market moving economic reports from the government tomorrow, but Thursday has a few potentially market moving reports due out, with Weekly Jobless Claims an hour before the opening bell, Leading Indicators, and Existing Home Sales both out at 10am ET...

Friday's Durable Goods Orders is one of the most important reports due out this week, and it arrives an hour before the opening bell...With New Home Sales numbers release half an hour later...

I'm not a buyer just because the market finally got above the old resistance level at 1130...Sometimes they do this to sucker people into buying...Just before they pull the rug out from under everyones feet...

Pay particular attention to my comments on the chart about Volume, and the two bearish divergences I see on the CCI and the MACD Histogram...

On More Stimulus Spending – by Dr. Ron Paul

http://stockmarketchartanalyst.blogspot.com/



Faced with continuing economic decline and an impending election, the administration, predictably, is entertaining the idea of another stimulus package. To explain why the last one didn't work, adherents to the Keynesian economic philosophy are claiming that they actually did work – it just looks like they didn't because we don't realize how much worse off we would be right now without trillions of dollars of public spending. The last administration bought into Keynesianism just as much as this one does, unfortunately. Until we have leaders who understand that debt is not the way to prosperity, there will be no stopping runaway government spending.

While it is nice to hear about business tax breaks, the positive results of these tax cuts will be dwarfed by its negative effects. First of all, $200 billion or so in temporary tax cuts and credits to businesses are nothing compared to the $3.8 trillion in tax hikes that will hit the economy like a ton of bricks on January 1, 2011 if the Bush tax cuts are not extended by Congress.

Second of all, businesses are reluctant to hire and invest, not because they are looking for temporary credits, but because of future uncertainty; they simply don't know what the government is going to do next and how future government policies will affect decisions they make now. What new costs and regulations will be placed on them with healthcare reform and financial services reform? Will Congress convene a lame-duck session this winter to pass cap-and-trade and other destructive legislation? What will the cost of compliance be for hiring new employees, and will that force them to simply lay off anyone they hire now? Worse, will the government come up with fines or additional costs if businesses have to lay people off in the future? Right now, the safest thing for businesses to do is nothing. Until we regain respect for the rule of law and remove some of this uncertainty, I'm afraid none of these temporary promises, made right before an election, will do much towards any economic improvement.

The other glaring problem with this proposed stimulus package is that it couples tax cuts with spending increases, which makes no sense when we are already heavily indebted to foreign countries. We should be cutting taxes and slashing government spending dramatically. The private sector simply cannot bear the burden of our engorged public sector. In fact, one reason earlier stimulus programs did not result in any private sector growth is because large amounts went to the public sector. Indeed, the spending that the administration is now proposing arguably constitutes a bailout of the public sector and various union allies of the administration.

This administration is falling into the same dangerous trap we fell into during the Great Depression, as did the Germans leading into their hyperinflation of the 1920's. The temptation is to do something, anything, proactive to attempt to stimulate the economy, but history has shown us that governments cannot spend their way into prosperity. The best thing government could do is get back to its Constitutional limitations and let the economy stabilize, heal and recover without the crushing burden of government holding it back.

http://www.thedailybell.com/1375/Ron-Paul-On-More-Stimulus-Spending.html

Update - The S&P 500's Daily Chart at the End of the Week:

http://stockmarketchartanalyst.blogspot.com/

The S&P 500 closed up 1.45% last week...

IMO, it has moved up "too far, too fast" since the bottom set in early September...There was only one minor pullback on the 7th of September that set the only level of support for it to fall back to...Going up too far, too fast creates a situation where it can fall just as fast (if not faster) than it went up...Just like it has a few times in the recent past...

Of course, that all depends on what kind of bogus economic reports the government puts out again next week...This has been called the "teflon rally" by some, because the market went up a number of times even though there were negative economic reports released...It appears that the market is letting bad news slide off it's back again these days...Probably because the PPT is hard at work making the market look better than it should due to the upcoming mid-term election on November the 2nd...

Basically, the market has been trapped in a trading range between 1020 to 1120 since the beginning of June, with two failed attempts to break above the 200 day moving average (not shown on this chart, but the current reading is 1116.16)...It is again at the upper end of the trading range, and I feel it's time for a pullback...But of course, it's not up to me...

IF the $SPX can convincingly break above the two levels of resistance it's had in the past at this level it's at, that would be Bullish...IF it pulls back and closes below the September 7th level of support, there's a good chance it will fall fast and furious back to the lower end of the trading range again...

http://images.investorshub.advfn.com/images/uploads/2010/9/18/kktkv1SPX-CCI.JPG



Here is the Economic Calendar for next week...There is a lot of housing data due out this week - which will most likely remain weak, plus the FOMC Meeting announcement is on Tuesday at 2:15pm...Durable Goods Orders is another one of the more important reports due out on Friday an hour before the opening bell, and keep an eye on the weekly Jobless Claims numbers due out on Thursday an hour before the opening bell...

Happy Trading next week!...
zigzagman

http://images.investorshub.advfn.com/images/uploads/2010/9/18/esivs1ecocal.JPG

Stocks Surge To Celebrate Unprecedented 19th Sequential Equity Outflow - $10 Billion In September Redemptions:

http://stockmarketchartanalyst.blogspot.com/

It is beyond a joke now:

ICI's latest data discloses that in the week ended September 8, domestic funds saw outflows of $2.2 billion, following last week's massive $7.7 billion. And yes, ETFs experienced outflows as well.

So far September has experienced nearly $10 billion in outflows, even as the market has ramped by over 6%. Who is buying this $hit? Just ask The New York Fed and Citadel: they may have a few pointers (wink wink).

This is the 19th sequential outflow from US stocks, and amounts to $65 billion in redemptions for the year.

With the market pretty much unchanged YTD, it means that mutual funds can not resort to capital appreciation as a substitute to outflows, and most are on their last breath (Janus: blink twice if you are still alive please).

The kicker: the S&P is at the level it was when the outflows began back during the flash crash.

If that doesn't restore all your confidence that Uncle Sam will be so good at managing the market (just like he has done with everything else), nothing else will. Throw in a little HFT, a little subpennying, a little Flash trading, a little DMA trading, a little quote stuffing, a little hedge fund clubbing, a little specialist front running, a little daily flash crash in big caps like Nucor Steel, and you can see why next week we will most certainly have our first inflow in 20 weeks. Or not.

It doesn't matter. Nobody that is made of carbon, or who doesn't already have direct access to the Fed for zero cost funding, is trading stocks anymore.





(If you are having a hard time seeing these two charts, click on the link below, and then click on the charts in the original article to expand them to full-size...)

http://www.zerohedge.com/article/stocks-surge-celebreate-unprecedented-19th-sequential-equity-outflow-10-billion-september-re

An Election Year Bounce?

http://stockmarketchartanalyst.blogspot.com/

This article is from the Casey Research website. Read the second article down from the top:

It’s safe to say that most of the Casey Research team are contrarian by nature and in practice. The reason is simple. Once everyone comes to believe that something is going to happen, then they’ll act in accordance with that belief. In investment terms, that means placing bets. For a while, the outcome becomes something of a self-fulfilling prophecy, until the point where pretty much everyone who is going to invest, has invested. At which time there’s little juice left in the trade.

That’s where the contrarian steps in with his opposing view and investment. That’s because, with everyone all in, the most likely next move will be a reversal that ultimately triggers a scramble to disinvest – once again resulting in a self-fulfilling prophecy, but one that provides the contrarian with outsized profits.

When viewed through that lens, the case for gold these days is interesting. Despite a lot of chatter and interest in the yellow metal within the community of what might be termed hard-asset investors, the broader investing universe knows little of gold and owns even less. I suspect that if you polled your ten closest friends and colleagues, you’d find that nine of them own no physical gold, no gold ETFs, and no gold stocks. “Too risky,” they might add with a harrumph.

Thus, while the price of gold has marched upwards relatively steadily over the past eight years and is breaking to new highs as I write, it would be a gross misstatement to say that it’s overbought.

Which brings me to the question of the U.S. stock market.

As readers of more than a few days will know, I don’t put a lot of stock in the institutions of our degraded democracy. What’s going on in Washington today is akin to a warped game where one team does everything it can to undermine the other, based on no real principles other than getting elected. The cost of the game is borne by none of the players, but by the people they are supposed to be serving. That cost can be seen in the insane levels of debt and the seemingly permanent state of war this country has been in for most of the 50-plus years I’ve been alive.

Now, that may seem off the topic of the outlook for the U.S. stock market, but I can assure you it’s not. For the Democrats to avoid being soundly thrashed in the inning scheduled for this November, they must first and foremost avoid any further bad news for the economy between now and then. And nothing shouts bad news louder than a stock market crash.

Yet, there is strong sentiment among the professional trading community that a stock market crash is just what’s coming – and a big one. On that topic, there was this out of Bloomberg yesterday.

Futures on the Chicago Board Options Exchange Volatility Index are pricing in a three-month gain of 31 percent and contracts based on swings in Europe and emerging-market equities have risen to near records, data compiled by Bloomberg show.

Translated, futures and options traders are expecting a lot of volatility in the near term.

Today’s gold price action, which has now decisively broken out on the upside – to over $1,270 per ounce – is also signaling a run for safer harbors. The underlying causes were an unexpected stumble in the German manufacturing sector – the only real lantern of hope in the eurozone – as well as increasing expectations that the Fed will buy up another $1 trillion in Treasuries.

Adding a few sticks to the fire, a persistent inflation has taken hold in the UK, running ahead of the government’s 3% target for the sixth month in a row.

“Wait a minute, chappie,” you might hear some old member mumble down at the club, “I thought it was deflation we were supposed to be worrying about?”

But I digress.

Given the highly politicized nature of U.S. economy and investment markets, we have to expect the Democrats will take desperate measures to try and prop up the stock market through the November elections.

Now, I’m not going to go on record as suggesting that those measures will include anything so devious as the sub rosa existence of a plunge protection team. I have no direct proof of it, though the Teflon-covered stock market of recent weeks – a market that bad news simply slides off, which is the case again today – does give one pause.

More overtly, however, we are able to see the latest political play unfold, in which the Democrats have suddenly decided to reverse themselves on the Bush tax moratorium that they so strongly derided during their presidential electioneering. Sure, if their proposal is passed, the moratorium will be extended only for those who make under $250,000 – but that can only be cheering for stock markets. And they have cleverly invited the Republicans to join them in this initiative, expressing dismay that the Republicans would stand in the way by insisting that America’s fattest cats – those who earn over $250,000 – enjoy the same extension.

That has put the Republicans in the uncomfortable position of having to defend the wealthy (heavens forbid!), while being seen to be obstructionist and penalizing the middle class (voters).

Good move by the Democrats.

In the end, it is almost certain that the Republicans are going to have to roll over on this issue – giving the Democrats the round as champions of said middle class. Or perhaps the Democrats are going to have to give in to the Republicans, saying as they do that at least they fought the good fight.

Either way, the news of the tax relief extension for some, or all, of a significant constituency can only be seen as a positive development for the economy and the stock market.

Though I am sure that the market is already pricing in some sort of an extension – should it be granted, the market could put in a solid surge.

What other moves might the Democrats make?

At this point, I can’t tell – but I do think it’s safe to say that they’ll do whatever they can to prop up the stock market until November. Which makes taking a bearish bet on the market just now a risky proposition. Especially given the large number of net speculative short positions now on against the stock market… you can see the elevated quantity of net short positions in the newspaper clipping just here.




If the market continues to weather the storms or bounces on a tax extension, then a classic short squeeze could occur. In other words, short sellers will be forced to buy in order to cover their positions, sending the market sharply higher, economic realities be damned.

And that added bounce could give the Democrats the cushion they need to make it through the elections.

What happens after the elections? Anyone’s guess, but the Fed’s buying of a trillion dollars worth of Treasuries is certainly in the ballpark. That’s because President Obama, as skilled a political player as has made it to the big game in decades, is almost certainly already laying out dramatic plans to ensure that he doesn’t strike out and get sent home after just one term.

Whatever he’s going to do, he’s going to need to do it with extra vigor, and he’s going to need to do it soon after the November elections.

It should be a wild ride. For the time being, however, if you’re short, be careful.

http://www.caseyresearch.com/displayCdd.php?id=535

CYCC - Cyclacel reaches Agreement with FDA on a Special Protocol Assessment for Pivotal Phase 3 trial of Sapacitabine in AML:

http://stockmarketchartanalyst.blogspot.com/

(CYCC has been my favorite microcap biotech company this year, mostly because they have a Nobel Prize winning scientist that has been working on an oral form of cancer cures for fourteen years. This would eliminate radiation, chemotherapy, and all of the other toxic anti-cancer drugs in use today. Do your own research on this company. I'm sure you will be pleasantly surprised with what you find.

http://www.cyclacel.com/cyc/investors/news/pressreleases/2010/2010-09-13/

BERKELEY HEIGHTS, NJ – September 13, 2010 – Cyclacel Pharmaceuticals, Inc. (NASDAQ - CYCC), a biopharmaceutical company developing oral therapies that target the various phases of cell cycle control for the treatment of cancer and other serious diseases, today announced that it has reached agreement with the U.S. Food and Drug Administration (FDA) regarding a Special Protocol Assessment (SPA) on the design of a pivotal Phase 3 trial for the Company’s sapacitabine oral capsules as a front-line treatment in elderly patients aged 70 years or older with newly diagnosed acute myeloid leukemia (AML) who are not candidates for intensive induction chemotherapy.

“The SPA agreement with FDA represents an important milestone for Cyclacel and provides a clear registration pathway for sapacitabine,” said Spiro Rombotis, President and Chief Executive Officer of Cyclacel. “If it reaches the market, sapacitabine would be the first orally-administered drug to be offered to this patient population with the potential to serve as induction, consolidation and maintenance treatment of this life-threatening disease. In addition to progressing to Phase 3 in AML, we look forward to reporting sapacitabine Phase 2 data in myelodysplastic syndromes (MDS) and non-small cell lung cancer (NSCLC).”

The Phase 3, registration-directed, clinical trial of sapacitabine oral capsules to be conducted under the SPA will be a randomized study against an active control drug with the primary objective of demonstrating an improvement in overall survival. Sapacitabine will be administered as an outpatient treatment. Cyclacel plans to begin patient enrollment in this Phase 3 trial before the end of 2010. Additional information on the design of the trial will be provided after initiation of the study.

“We are pleased to receive the SPA Agreement letter from the FDA stating that the design and planned analysis of the pivotal Phase 3 study adequately address the objectives necessary to support the submission of a New Drug Application (NDA),” said Judy Chiao, M.D., Vice President of Clinical Development and Regulatory Affairs of Cyclacel. “AML in the elderly is a life-threatening disease with high unmet medical need. Patients with AML aged 70 years or older have a poor prognosis as the majority of these patients are not candidates for intensive induction chemotherapy because of poor tolerability to such therapy and a high risk of relapse because of the lack of effective consolidation and maintenance therapy. We will now concentrate our efforts on initiating the Phase 3 study in AML in collaboration with our clinical investigators.”

In addition to the Cyclacel-sponsored trials of sapacitabine, the company has been approached by cooperative groups seeking to conduct, largely at their expense, investigator-initiated studies of sapacitabine with alternative study designs.

About Acute Myeloid Leukemia (AML):

AML is a cancer of the blood cells that progresses rapidly and if not treated, could be fatal in a few months. AML is generally a disease of older people and is uncommon before the age of 40. The average age of a patient with AML is about 67 years. There are more than 12,300 new cases of AML, of which about half are elderly, and nearly 9,000 deaths caused by this cancer each year in the United States. A recently published review of The University of Texas M. D. Anderson Cancer Center’s historical experience with front-line intensive induction chemotherapy for elderly AML patients aged 70 years or older demonstrated that while 45% of patients achieved a complete remission, median overall survival was only 4.6 months and 36% of patients died within the first 8 weeks of treatment, underscoring the unmet need in this patient setting. †

About Special Protocol Assessment (SPA):

A Special Protocol Assessment is a binding written agreement with the FDA that the sponsor’s proposed trial protocol design, clinical endpoints and statistical analyses are acceptable to support regulatory approval. Final marketing approval depends on efficacy results, adverse event profile and an evaluation of the benefit/risk of a treatment as demonstrated in the trial. For further information regarding the SPA process, please visit the FDA website, www.fda.gov.

About Sapacitabine:

Sapacitabine (CYC682), an orally-available nucleoside analogue, is currently being evaluated in Phase 2 trials in patients with hematological malignancies and solid tumors. Sapacitabine acts through a dual mechanism, interfering with DNA synthesis by causing single-strand DNA breaks and inducing arrest of cell cycle progression mainly at G2-Phase. Both sapacitabine and CNDAC, its major metabolite, have demonstrated potent anti-tumor activity in preclinical studies. Over 200 patients have received sapacitabine in Phase 2 studies in AML, MDS, cutaneous T cell lymphoma (CTCL) and non-small cell lung cancer (NSCLC). Sapacitabine has been administered to approximately 170 patients in five Phase 1 studies with both hematologic malignancies and solid tumors. In December 2009 at the 51st Annual Meeting of the American Society of Hematology (ASH), Cyclacel reported data from a randomized Phase 2 study including promising 1-year survival in elderly patients with AML aged 70 years or older. Sapacitabine is part of Cyclacel’s pipeline of small molecule drugs designed to target and stop uncontrolled cell division.

About Cyclacel Pharmaceuticals, Inc.:

Cyclacel is a biopharmaceutical company developing oral therapies that target the various phases of cell cycle control for the treatment of cancer and other serious diseases. Three product candidates are in clinical development: Sapacitabine (CYC682), a cell cycle modulating nucleoside analog, completed Phase 2 studies for the treatment of acute myeloid leukemia in the elderly and is in Phase 2 for myelodysplastic syndromes and lung cancer. Seliciclib (CYC202 or R-roscovitine), a CDK (cyclin dependent kinase) inhibitor, is in Phase 2 studies for the treatment of lung cancer and nasopharyngeal cancer and in a Phase 1 trial in combination with sapacitabine. CYC116, an Aurora kinase and VEGFR2 inhibitor, is in a Phase 1 trial in patients with solid tumors. Cyclacel’s ALIGN Pharmaceuticals subsidiary markets directly in the U.S. Xclair® Cream for radiation dermatitis, Numoisyn® Liquid and Numoisyn® Lozenges for xerostomia. Cyclacel’s strategy is to build a diversified biopharmaceutical business focused in hematology and oncology based on a portfolio of commercial products and a development pipeline of novel drug candidates. For additional information please visit www.cyclacel.com.

Forward-looking Statements:

This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements include statements regarding, among other things, the efficacy, safety, and intended utilization of Cyclacel's product candidates, the conduct and results of future clinical trials, plans regarding regulatory filings, future research and clinical trials and plans regarding partnering activities. Factors that may cause actual results to differ materially include the risk that product candidates that appeared promising in early research and clinical trials do not demonstrate safety and/or efficacy in larger-scale or later clinical trials, the risk that Cyclacel will not obtain approval to market its products, the risks associated with reliance on outside financing to meet capital requirements, and the risks associated with reliance on collaborative partners for further clinical trials, development and commercialization of product candidates. You are urged to consider statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties the Company faces, please refer to our most recent Annual Report on Form 10-K and other periodic and current filings that have been filed with the Securities and Exchange Commission and are available at www.sec.gov. Such forward-looking statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact for Cyclacel Pharmaceuticals, Inc.:

Investors/Media:
Corey Sohmer, (908) 517-7330
csohmer@cyclacel.com

Dangerous Economic Misconceptions:

http://stockmarketchartanalyst.blogspot.com/

I won't be posting my usual fundamental and technical analysis of the S&P 500's daily and weekly charts this weekend for a couple of reasons...The first is, we have family visiting from far away, and creating and posting my charts takes many hours...And secondly, what's the point?...

If you've been following my blog lately, I've been harping on how corrupt the market has become lately, and how much more difficult it is to predict near terms movements because of this...The mainstream media/propaganda machine and bogus government economic reports were in full force again this week...So it's no surprise that the market went UP!...Here is just one example of a bogus economic report put out by the gubbermint this week...The weekly jobless claims numbers were "estimated" because numerous states didn't report their numbers to the BLM because of the Labor Day holiday!...So what did the gubbermint do?...They LIED/FUDGED the numbers as usual:

Nine States Did Not File Initial Claims Data Due To Labor Day, Hundreds Of Thousands Of Estimates In Data "Beat"

http://www.zerohedge.com/article/nine-states-did-not-file-initial-claims-data-due-labor-day-hundreds-thousands-estimates-data

So you can see that the powers that be are doing all they can to make the market rally again, even though there is no real reason for it to do so...IMO

And this article backs up everything I've been saying for months now...It took me a number of hours to read the entire story yesterday...And by that, I mean also reading every story included in it, because there are numerous links in this article that verify the paragraph written above it...These are the kinds of TRUTHS you will NOT hear from the mainstream media/gubbermint propaganda machine!...

In my humble opinion, this has to be one of the top ten articles I've read so far this YEAR!...And I highly encourage you to take the time and read the whole article, and also follow every link below every paragraph so you can verify that what the author has written is the TRUTH...

http://neithercorp.us/npress/?p=748

Please! SHARE this to all you Friends on numerous Social Media sites, using the "Bookmark" button below...

And also...Take a few moments out of your day to remember the thousands of lives lost in the attack on the World Trade Center that happened nine years ago today...September 11, 2001

NEWS - From "Alternative" Sources - NOT the Mainstream Propaganda Machine...

http://stockmarketchartanalyst.blogspot.com/

Here are a number of articles I read this morning, from my favorite "alternative" news sources:

--------------------------------------------------------

Shadow Government Statistics:
Analysis Behind and Beyond Government Economic Reporting

http://www.shadowstats.com/

If you've watched my last few updates on the market, you'll notice that I'm quite cynical when it comes to any economic report put out by the government (and I'm also very skeptical that earnings reports aren't continually being fudged. Just look at the recent SEC case against Dell as an example). This site gives you the REAL scoop when it comes to the government's reports of economic data...

--------------------------------------------------------

Show Me the Recovery:
While second-quarter sales increases are encouraging, weak cash generation is worrisome.

http://www.cfo.com/article.cfm/14522495

--------------------------------------------------------

Claims of Recovery But Results Nowhere To Be Found:
A weekly excerpt from the subscription issue of The International Forecaster, taken from Bob Chapman's weekly publication.

http://theinternationalforecaster.com/International_Forecaster_Weekly/Claims_of_Recovery_But_Results_Nowhere_To_Be_Found

--------------------------------------------------------

Economists Cut U.S. Growth Forecast - AGAIN!:
Projected U.S. economic growth for the rest of this year and next was revised down for a third month in a row by a panel of about 50 economists.

http://finance.yahoo.com/news/Economists-cut-US-growth-rb-1119878296.html?x=0

--------------------------------------------------------

Hell Yes It’s Class Warfare! Part 1:
There is an intentional misconception out there in the market place of talking points and political discussion – it is that liberals are waging class warfare on the wealthy.

http://cons-lie.com/2010/09/07/hell-yes-its-class-warfare-part-1/

Hell Yes It’s Class Warfare! Part 2:

http://cons-lie.com/2010/09/08/hell-yes-its-class-warfare-part-2/

--------------------------------------------------------

The Wholly Fallible Ben Bernanke:
Despite three crucial errors at the Federal Reserve, its chairman is still revered as if he is the pope – while we pay the price.

http://www.guardian.co.uk/commentisfree/cifamerica/2010/sep/08/ben-bernanke-federal-reserve

--------------------------------------------------------

Rome is Burning:
There is a critical point that I fear the commentariat is just not getting.

http://modeledbehavior.com/2010/09/07/rome-is-burning/

--------------------------------------------------------

In The Headlights:
The toils of summer are bygone now. The days grow shorter and America stands in the darkling road of its own prospects like a dumb animal frozen in the blinding light of approaching fury.

http://www.kunstler.com/blog/2010/09/in-the-headlights.html#more

--------------------------------------------------------

Death By Globalism:
Have economists made themselves irrelevant? If you have any doubts, have a look at the current issue of themagazine, International Economy, a slick publication endorsed by former Federal Reserve chairmen Paul Volcker and Alan Greenspan, by Jean-Claude Trichet, president of the European Central Bank, by former Secretary of State George Shultz, and by the New York Times and Washington Post, both of which declare the magazine to be “ahead of the curve.”

http://www.counterpunch.org/roberts09012010.html

--------------------------------------------------------

And finally, the winner of the "Doom and Gloom Award" goes to this piece, which I found to be a fascinating read...

Doomsdayers Not Cynical Enough:
[Like your editor, Rick’s Picks forum regular Wayne Razzi (aka “Red Will”) is a veteran floor-trader who grew up in South Jersey. When I asked him if he would like to contribute a guest commentary, I was not expecting the provocative tour de force that unfolds, step by step, below. In the essay, Will asserts nothing less that that the impending collapse of our economic system was meticulously engineered by financial and political sociopaths. Let me attest that his is not some whack-o conspiracy theory; rather, it is the closely-reasoned argument of a highly intelligent person who values truth sufficiently to have searched for it, in the form of an answer to a profoundly disturbing question, for many years. Judge for yourself whether his conclusions tally with your own thoughts as to why the American Dream is about to go bust. RA]

http://news.goldseek.com/RickAckerman/1284012060.php

--------------------------------------------------------

That's it for today...
I hope you enjoy reading these articles as much as I did!

Happy Trading!...
the zigzagman

Update - The S&P 500's Daily & Weekly Charts:

http://stockmarketchartanalyst.blogspot.com/

What a week it was!...Not many expected the market to rally like it did (least of all me), but there was good money to be made last week if you went with the trend...

So...All of a sudden, we're getting great news from just about every economic report put out by the government, with upward revisions to previous months numbers...LOL...

I guess the powers that be didn't want the market to tank below critical support levels it was flirting with at the end of the previous week, so the Plunge Protection Team was ordered to work overtime...For those of you who don't know what the PPT is, there are four links at the bottom of this post that will give you an idea of what they do...

Basically the PPT (mainly Goldman Sachs and JP Morgan) buys S&P eMini Futures as a way to prop up the market...The Dems really don't want to see the market crash just before a mid-term election, so they're pumping up the propaganda machine by putting out rosy economic reports with even rosier revisions to previous months numbers...And they have ordered the PPT to keep the $SPX well above 1010. by any means necessary...Everyone knows that if the $SPX breaks below the 1010. support level it will dump fast and furious towards the 875-925 zone...

So with the PPT and the propaganda machine running at full tilt the next two months before the election, anything can happen and it's a fools game to try to make predictions about the market's future movements because of all of this...

But let's take a look at last week's technicals anyway...There are two daily charts and a weekly chart below that have my comments on them that are self explanatory...The Economic Calendar below the charts shows that there are not many potentially market moving reports due out next week...It is one of the slowest weeks for economic reports in quite a while, and there are also very few important earnings reports due out next week...And that makes me wonder what the catalysts will be that can move our markets in the coming week?...Maybe news from Asia or the Euro zone?...

Below the charts are some news releases put out this week that show how bogus some of the economic reports were, and that the real numbers were not as rosy as the propaganda machine would have us believe...

Here's the daily chart with my primary indicators on it...

I just saw my blog on a 19 inch monitor for the first time at a friends house (I have four 23 inch monitors), and noticed that the right side of the charts are cut off...Next time I post charts, I'll have to pick a smaller size before I start to put comments onto them...

For those of you with 19 inch (or smaller) monitors, I've included the URL to the images above the charts...

http://images.investorshub.advfn.com/images/uploads/2010/9/4/jpfmuCCI.JPG



Here is another daily chart with my secondary indicators...

http://images.investorshub.advfn.com/images/uploads/2010/9/4/kulepRSI.JPG



Here is the weekly chart that has done a 180 degree flip-flop, from being extremely bearish two Friday's ago, to being way more bullish than bearish at the end of this week...

http://images.investorshub.advfn.com/images/uploads/2010/9/4/cnoetWEEKLY.JPG



Here is a chart pattern the Bulls would like to see develop this fall:

http://images.investorshub.advfn.com/images/uploads/2010/9/5/[jlusIHS.JPG



As I already mentioned, the Economic Calendar for next week is a light one...The market is closed on Monday in observance of Labor Day...The only red star for an American report is the International Trade numbers that come out an hour before the opening bell on Thursday...



Here are some interesting articles that came out this week, most of them relating to the jobs situation report for August...My only comment is that the unemployment rate ROSE from 9.5% to 9.6% in August, and they go into more detail in the first two articles...

Don't kid yourselves folks!...One up week because of good news out of China, and some manipulated manufacturing and jobs reports at home do not make for a strong recovery...Reality will settle in again soon in my opinion...The huge move up on Wednesday, Thursday, and Friday is NOT sustainable!...It moved much too far-too fast, and much too vertical of a move, and it can drop back down to where it came from just as quickly or faster...It's all up to which strings the puppeteers feel like pulling next week...

Happy Trading! next week...
and to all of us Americans,
have a Safe and Happy Labor Day!!!...

zigzagman
Tom

Here are some interesting articles from this week that describe how bogus the economic reports were this week, especially the jobs numbers:

The Long Road to Recovery:
http://www.caseyresearch.com/displayCdd.php?id=527

7 Weak Spots In The Employment Report:
http://www.businessinsider.com/the-7-weak-spots-in-the-employment-report-2010-9

5 Key Lessons in August's Jobs Report:
http://finance.yahoo.com/news/5-Key-Lessons-in-Augusts-Jobs-usnews-1660270043.html?x=0

Despite hiring, US unemployment rate seems frozen:
http://finance.yahoo.com/news/Despite-hiring-US-apf-780694354.html?x=0

ICI Mutual Fund Statistics:
http://blogs.decisionpoint.com/chart_spotlight/2010/09/ici-mutual-fund-statistics.html

Here are four links that describe the PPT:

Do a Google Search for yourself to see how many hits there are about this subject...I just picked a few at random, because I've done my research on the subject over a number of years:

http://en.wikipedia.org/wiki/Working_Group_on_Financial_Markets

http://www.thenewamerican.com/index.php/economy/commentary-mainmenu-43/2715-stock-rally-due-to-ppt-conspiracy

http://www.zerohedge.com/article/cnbc-guest-says-absent-plunge-protection-team-stepping-market-would-fall-wien-kernan-disgust

http://tobefree.wordpress.com/2010/05/08/secrets-of-the-plunge-protection-team-reagans-executive-order-12631-working-group-on-financial-markets-author-warned-in-2004-get-out-of-the-markets-before-the-inflated-derivative-bubble-burs/