A Wedge Break from SPX is a FOMC Trap

INDEX:SPX   S&P 500 Index
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If we were looking at technicals alone, the S&P 500             nudged the upper end of the consolidation pattern over the past three weeks. If there were no major fundamental hiccups ahead, it would be a good signal. The problem is the fundamental seas are looking rougher than what this technical pattern is capable of navigating. I'll wait until after the Fed decision to judge the equity index's next move...
Technical point of view, I see a BEAR PENANT with a starting BEAR FLAG at the end, No need to go to fundamentals.
+1 Reply
Ruien fishin
I think the point is that any technical setup could be a trap before an event which would render the signal irrelevant. I also view this as a bearish setup, but an FOMC statement could still blow it away - thus, fundamentals can't be ignored here regardless of direction.
Agree to that.... its a bearish pattern as seen via SPY.


The volume is getting lower...
Always go to the fundamentals. Fundamentals are what traders and investors use to determine what price should be paid. Technicals alone is blind trading.
+1 Reply
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