Short covering to continue if CCI moves above resistance line.

Expecting short covering to continue Mon and Tue as FED expected to lower rates 75-100 bps. Divergences showing up on the charts. First hint of short covering will be CCI moving above the indicated resistance line on the chart. Targets are indicated in anchored texts.

Comment:

#ES futures are limit down, even though FED announced rates to 0% and $750B QE program. Markets gave a punch in the mouth to CB's of the world as economic devastation looms. Are markets finally showing CB's who the real boss is?

CCI resistance does not appear to be taken out anytime soon.

Comment:

Although the #ES futures are currently locked limit down the day session, when US markets open, will like see a sharp reversal to the upside and SPY could recoup all the futures losses. The clue comes from the foreign markets that are recovering sharply from their own losses.
In Australia, shares recovered from earlier losses and rebounded sharply, with the S&P/ASX 200 closing 4.42% higher at 5,539.30 after falling more than 8% at its lows during the session.
Over in India, the Nifty 50 rose into positive territory as it jumped 2.15%. Trading on the index was halted temporarily earlier after the index dropped 10% and triggered a circuit breaker.

Comment:

Well, the rip was sold into. Most world indices down -6% or more. Futures still closed limit down.