Ben Still Talking Up Markets; Signs Small-Caps Done Correcting; Astro Fuel To 1885; Trading Hidden Divergence

Collective Intelligence!

Snippets: U.S. to charge Chinese with cyber spying: U.S. grand jury charges 5 Chinese hackers with economic espionage, trade secret theft. U.S. says Chinese hackers spied on six American targets in the nuclear power, metals and solar products industries – For the most part these headlines are old news … that both the Chinese and the Russians are getting another good laugh over, but don’t tell anybody …

INSIGHT- At big-ticket dinners, a blunt Bernanke sounds theme of low rates — In a series of quarter-million-dollar dinners with wealthy private investors, Ben Bernanke has been clearer than he ever was as chairman of the Federal Reserve on his expectations that easy-money policies and below-normal interest rates are here for a long time to come, according to some of those in attendance.http://reut.rs/1n8JRXi  NEW YORK/BOSTON, May 16 (Reuters).

Don’t leave small-cap stocks for dead — There are many reasons for the sharp underperformance of small-cap stocks in the past six weeks, but the recent correction may be winding down, which means investors worried about a broader selloff might be able to breathe more easily.http://reut.rs/1j2vGuB

Investors shouldn’t forget comments Draghi made back in 2012 during an interview w/the WSJ: WSJ: What’s the first statistic you look at in the morning? Draghi: Stock markets. WSJ: Do you look at the euro exchange rate? Draghi: Not in the early morning.

stockmarketwhisperer (09:06) Hi ! I’ve got a computer problem..sigh… i think I fixed it.. fingers crossed. There’s fuel to reach as far as 1885 from what I can see … BUT 1879 is meaningful as to whether bears have any edge for later in the week. Mars at a stand still ! Moon in a ‘jumpy’ nervous mood, but we can surge and move quick to a top. More Putin headlines due next 24 hrs … markets may be led by naz today … Mars goes direct this evening … but takes a few days to pickup speed to normal.

jack_broz (09:27) strange markets. 10s/5s have some legs but so do SPs. watch 125.285 in 10s and 1872-1870 in SPs – looking for 10s to ease up to 126.025…5s to 120.13_2…bonds will join in if they can trade some 137.26/27s. Chance (09:41) bonds pressing highs.

Today started with 216k ESM traded on Globex, trading range was 1877.50 – 1865.75.  Friday’s regular trading hours (RTH’s), pit session trading range was 1875.50 – 1861.50 before settling at 1874.70, up 7.4 handles.

Today’s RTH’s, pit session, gapped 4.5 handles higher to 1870.50 – 1869.80  traded 1869.50 before bouncing to 1877.80 first 15 min… 1877.25 / 1869.25 small fade and back to 1878.50 Chance (09:41) bonds pressing highs  stephen (09:43) lowest yield so far today 2.495 10 year – [NDX] leading, +.5% morning risk on. william_blount (09:46) so far NORMAL, but already feeling the influence of the descnding RED TL on the 5 min spx chart  -  NQ –no change from last week -MUST CONVERT 3614 to hard support Kathy (09:53) NQ bearish PRZ ideal tgt is 3606.5, but a hold below 3600.5 implies retest of 15m hi 3595.75 which correlates w/ Swordline 3596 Roger (10:09) 10 handles from RTH low Sam (11:29)  massive pit only abc up nq 3616 bulls forced to make new highs or its very bad for them – the bears must protect either 1650 nq or 18.75 if they fall then new highs – bears hanging their hopes and dreams on those 2 numbers circle them. stephen (11:31) 2.518 10yr Chance (11:32) first decent pullback in TICK all day – and all we got … was sideways trade in the low 1880’s to the upper 1870’ and back up …

Kathy lunch video http://bit.ly/1kiu70l

PivotBoss midday update http://bit.ly/TmA6HZ ADR targets http://bit.ly/RPDl9E

stockmarketwhisperer (13:15) important aspect not until 11:40ishPT turning trade soon Long to short … (13:29) turned the trade L+12, short 1882.25. Chance (13:18) some divergences up here w/ cumulative delta & internals – neg … and a new high of 1882.70 prints – filling the Tepper gap … nobody said it was gonna be easy! Chicagostock (13:28) Upper vol window @ 187800, bears need to get back below to retest cash open. Tyra (14:30) 2 times, now … with pullbacks on Kathy’s renko2 … just idea of it, I want to show you… higher low on price at 1878.75 was first one, second was higher low on price at 1879.25… each time on macd we had little bit lower low… it is called “hidden divergence” where you have higher low on price with lower low on macd = bullish for long idea… especially when STrenko6 is in uptrend … http://screencast.com/t/apE8VMwZEa

Sam (13:39) even if we get into no mans land between 1885.75 and 92.25 — there its just a bigger short. stephen (13:40) FED Williams said closing in on final stages of tapering. The MiM – MrTopStep Imbalance Meter started a small sell, grew to a modest $240M by 2:25CT - the futures traded a late low of 1879.50 area (SMW 1879 is meaningful) at 2:17before grinding back up. stockmarketwhisperer (14:27) negative energy until 6pm PT. Chicagostock (14:39) new high by tick, below 187925 ES to confirm failed new high. The imbalance flipped late $30M to buy going into the cash close … the futures traded 1881.90 area on the cash close – paper seller in da pit of 700 big S&P 188150 area. The locals provided the liquidity before maintaining the bid – settling at 1882.30, up 7.6 handles on volume of 1M e-minis, while the [VIX] was up fractionally.

Eco calendars: http://www.investing.com/economic-calendar/   http://www.dailyfx.com/calendar
Boss! Click the link – even if you saw this already it’s worth it http://huff.to/1jhP1MX