SPX weekly update

So far the price action goes with the script we tested the gap area yesterday to fall back in a 24 h spike. The trendline serves as a perfect resistance and we are heading for the final decline for now towards 990-1000 which should happen fairly quickly now. Today is crucial with strong revised GDP and Bernanke speech expected to give clues for the scale of QE. The charts say we are rather heading for a disappointment and a mini-capitulation. As plenty sentiment readings are oversold another drop of around 5 % will trigger a short covering rally as even Barrons has now eyed the head and shoulder pattern - though its the bigger scale one we rather see a fake out for now. Obama and his puppet masters no that a dropping stock market will be not good for them in many ways as it would also stop the mergers machine starting to run again and they want to sell plenty of GM so they will through PPT into the game early Sep to screw with the shorts once again. For traders I recommend covering shorts around 1000 and below short term.