1. S&P500 SP500 reached lower to the Dec. 2015 support in the morning and hold above it before and after FOMC.Closed at 2095.1 which is under the recent swing high resistance. This pattern looks not like not a strong reversal. But by penetrating the .618 level of the last down trend of wave a-b-c, .786 (2013) is next target.
Looking for a short entry @ 2013 if it shows a sign of top, SL @ 2112.5, TP@ 2093.5, this is not a trade with good P/L ratio, so it is ok to ignore it. But the new wave a is not likely to surpass wave a/1 @ 2110, which adds to the safety of this trade. Anyway, don't follow my trade since I cannot elaborate every detail in this trading journal, and also I only have 40% of chance to win as a day trader.
2.OIL OIL divergence on daily chart. A major correction may happen before the end of next week.
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correction .786 (2103)
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call missed. testing FOMC. this confirms the resistance @ 2100
Thanks. In addition to retracement levels, ES_F, 2097.75 is veritable fortress as determined by confluence surrounding the level. To convert to SPX, we add approx 5.5 points and arrive at 2103.25 the level you discuss. I will be watching these levels very closely and upon any hint of failure I will short with modest expectations of around 7 points.