Market update

May 21, 2009 Market Analysis and Forecast

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Bearish Churning Markets at PivotsMarkets are continuing to trade above intraday support area even though we are seeing some technical violation of uptrend lines.
* As noted during the trading hours, markets bounced off from the intraday low and support, SPX 879.61, DOW 8221.01, and Nasdaq 1677.77.* Contrarily, VIX/VXN have risen to 31.35 and 31.20, respectively, as noted that the volatility is at intermediate support. I commented on the VIX/VXN relative to market actions since 2004, and now, Volatility is of course orchestrated to in sync with market actions to manipulate market directions. This is easy to do when you have entire money printing machine to gear market actions.
* Markets are trading near at major resistances: SPX 930 +/-, DOW 8600 +/-, Nasdaq 1770 +/-, NYA 6000 +/-* As previously noted, it is detrimental to hype markets while we do not have genuine economic growth as prices will go up while real wealth is not generated; hence, we will see hidden inflation. Don't be fooled by the market hype as, at this point, many are waiting to unload positions to late comers.

DOW daily

* DOW 8292.13
* DOW traded to intraday support, 8221.01, and rallied back closing with a falling hammer formation.
* Markets are still waiting for sideline money to bite the bait.
* At this point, being in cash is safer as markets already rallied 30% from the low. If you have not exited markets, it was worth to stay in the markets. Evidently, there are still sideline money.
* Markets are continuing to show negative divergences. * The Fed forecasted lower GDP and job growth. Ref to the link on Page 1, FOMC Minutes.

EXTREME MARKET MANIPULATION
* Markets are still holding up - bouncing off from the intraday support areas which noted.* Markets were trading in trends even though we are seeing negative momentum in price and breath actions.
* Markets are showing highly manipulated price actions.
* With the higher volatility, markets are inherently possess higher risk.
* Financial markets are normally leading economy, however, remember that US household income has been demolished during the last decade for many.