The SPX reached the wave 3 target 1170 which is also the Head and Shoulder target and finally the support of the trading channel. Since tomorrow is FED meeting QE3 could be announced as also charts put the odds around 60% – as today according to the future prices we will mark a 9set-up count and a 11 combo and we are 40 points below weekly Bollinger. The fact that we took out the 2010 high so easily is a harbinger of bad things to come for the bulls as we have entered a secular bear market which will run for about 9 months at least – being in month 2. The monthly charts suggest a big top is in place and the tide has turned which is supported very strong by fundamental matters as we are heading for the second part of the depression. The point is due to the reality check the world is entering adjustments need to be made acording to evaluations as I said before 8 times earnings is the best one can demand on the upside and the next problem to factor in is what are the real earnings with 25% coming from financials who are allowed to cheat officially and unofficially. Coming back to the short term technical picture I am looking to cover half of the shorts within 24 h in the 1150-70 area and the safest way to work it is with a stop around 1135 and run up at least 40 points from the 70 level at least in case of QE3 it could rather be 100 points to the 1260 area. The problem is really that capitalism has ended and we are in a permanent bailout mode for banks for 3 years now and those thieves still dare to pay themselves millions of bonus allthough all they do is to bring more gloom and doom upon the world. It is by any perspective insane and perverse what the system is doing by keeping the dead man walking and the bitter end of that will be very likely WW3 which is already n its way. Once we are higher in the SPX selling is a mandatory thing as QE3 will not have the effect the others had before as the FED has lost credibility with the rest of America which will be unwind slowly as the reserve currency but for now where are no alternatives. The SPX will fall into the 600-800 level over time as america is trapped now in the moronic election game already and none of the urgent steps will be taken and after the elections it will be to late anyway. The first thing they need to do by the way is to close all these ivory schools since all the bullshit which runs the world into the iceberg comes from those alumnis especially Harvard stands out as their former boss summer not only lost billions for the school but he is one of the main architects for this mess together with Greenspan, Bernanke,Bush, Obama … this list could go on four months and they have all in common this school – seems rather to be an evil place No offense since I am sure plenty of smart and decent students have been there as well but it sticks out that the final performance of their students in power do not do any good for others – they do excellent for themselves though Well and if one entertains the idea that the best should be rewarded what I fully support they also have to ride out their failures by their own and not get bailed out. I know this is not the place to discuss such things but it will have an impact going forward on the markets. The tough part we saw in Tottenham , the soft version was in Israel this weekend but the uprising of the people against this scam of ivory school communism will be a huge trouble point the next 3 years – increasingly so.