Well here we are again. It was a lot of chop but we are right back up to the old price range of 405-410 leading into an FOMC meeting.
Today we had some low volume and a wick on the daily chart.
The low volume signals to me that the bears gave up the fight early and are giving the bulls some room to run; however, the wick shows me that bulls are not ready to test 410 yet.
Greed is at very high levels, almost exactly where it was just before the FOMC in December.
the PCE report HIT the target, it did not miss, it did not overshoot.
There is a good reason to believe that nothing has changed in the minds of the Fed.
If they are hitting the target and the labor market is strong with stocks rallying there is no reason to pivot, they will stay the course.
When that news comes out I expect bears to make their move to push the market down.
I expect bulls to take the 25 bps hike (very likely at this point) as a positive sign and they will be very willing to buy the dip.
I am expecting some strong support around 392 since that is where we have horizontal support as well as the trendline from our October drop (Drawn in white)
Earnings and other news will be critical for bears if they want to push lower, definitely a lot to watch in the upcoming weeks.
Today we had some low volume and a wick on the daily chart.
The low volume signals to me that the bears gave up the fight early and are giving the bulls some room to run; however, the wick shows me that bulls are not ready to test 410 yet.
Greed is at very high levels, almost exactly where it was just before the FOMC in December.
the PCE report HIT the target, it did not miss, it did not overshoot.
There is a good reason to believe that nothing has changed in the minds of the Fed.
If they are hitting the target and the labor market is strong with stocks rallying there is no reason to pivot, they will stay the course.
When that news comes out I expect bears to make their move to push the market down.
I expect bulls to take the 25 bps hike (very likely at this point) as a positive sign and they will be very willing to buy the dip.
I am expecting some strong support around 392 since that is where we have horizontal support as well as the trendline from our October drop (Drawn in white)
Earnings and other news will be critical for bears if they want to push lower, definitely a lot to watch in the upcoming weeks.