The S&P 500 has rallied handsomely off the lows of 2631. In 3 sessions it has recouped 112 points! Bear markets (which I believe we are in given the chart damage on so many stocks) tend to swing to extremes very quickly but ultimately resolve lower. I believe we are setup to run into and be rejected by overhead resistance at SPX 2750.
The market rallied hard off of Fed Chaiman Powell's comments today but Powell said nothing decisive. Also, trade war fears still loom in the background with a lot of faith placed in this weekend's meetings where likely no deal will be made.
I believe this trade may coincide well with the release of the Fed minutes tomorrow at 2pm where we will see that Fed chairs likely said nothing about being 'data dependent' during the FOMC meeting 3 weeks ago. This may completely walk back the sentiment of Powell's comments. If this happens, I wouldn't be surprised to see much lower than 2720.
Entry: 2747-2750
Stop: 2765
Target: 2720
The market rallied hard off of Fed Chaiman Powell's comments today but Powell said nothing decisive. Also, trade war fears still loom in the background with a lot of faith placed in this weekend's meetings where likely no deal will be made.
I believe this trade may coincide well with the release of the Fed minutes tomorrow at 2pm where we will see that Fed chairs likely said nothing about being 'data dependent' during the FOMC meeting 3 weeks ago. This may completely walk back the sentiment of Powell's comments. If this happens, I wouldn't be surprised to see much lower than 2720.
Entry: 2747-2750
Stop: 2765
Target: 2720
Comment:
Typo on the chart. It should say "2747-2750".
Trade closed: stop reached
Trade active:
Last update was a mistake. Trade was never active. Trade is now active.
Trade closed: stop reached