Here we are again. Consolidation within the right shoulder. An attempt to break the H&S pattern has failed. It increases the odds for the buy side to go after the ATH. However, this week is the FOMC - the mother of all events. It is impossible to predict the market reaction. What comes to rescue is the trusted technique: acceptance/rejection of the inflection levels. Let the market show its hand. Nothing really beats the market tell. There are hidden forces behind the moves. They are called hidden for a reason...
The options market defines the following range for the next week:
15950 - 16700. It's a big range. The volatility is priced in.
The market is heading to the year end. If you look at the quarterly, yearly timeframe you would not feel bearish. This is pretty much the feeling have the fund managers. I honestly don't expect to see any significant correction in the remainder for the year. But again, let the market show its hand. A bias could be very deceiving.
Good luck!
11/12/2021
The options market defines the following range for the next week:
15950 - 16700. It's a big range. The volatility is priced in.
The market is heading to the year end. If you look at the quarterly, yearly timeframe you would not feel bearish. This is pretty much the feeling have the fund managers. I honestly don't expect to see any significant correction in the remainder for the year. But again, let the market show its hand. A bias could be very deceiving.
Good luck!
11/12/2021