Today's FOMC minutes, and subsequent conference, was enlightening. The Fed has signalled that there will be no additional hikes in 2019, which the market had already priced in. Additionally, the Fed's quantitative tightening ( balance sheet reduction) will be tapered and expected to end by the end of September.
The bid-to-risk was short lived as the SPY and DIA...
Pay close attention to XLF today (FOMC) - Although it is currently testing support there's an option for a false break signal here.
If XLF won't close in green today after Powell's message, this can be a trigger for another short term wave (and potentially even a strong one) in U.S stock markets.
Applying some of the most popular indicators on the pair XLF/KRE shows an interesting pattern. While KRE has been clearly outperforming XLF since December 2018, a trend reversal seems to occur. XLF might catch up in the coming days and weeks.
Current stock market rally has been driven by Tech and Financials ... thanks to the Trump Powell Put and the worldwide recurring or ongoing QE by central banks (ECB, BOJ, PBOC) ... while the FED seems to be on track, too.
Question is ... are stocks heading higher? Or will we see a massive pullback and retest the low?
200 SMA is clinging from above to the...
Decision time is approaching in the Fins and they will most likely show the way for the rest of the market. Volume has been steadily falling indicating exhaustion is near, whether it is by buyers or sellers remains to be seen. Personally I favor buyer exhaustion, which would lead to a test of 200MA hourly and the fib at 24.85ish. Seller exhaustion would target...
Bulls remain in full control, I'm bullish until the 4hr trends change but I'm cautious as a bull given how extended we are on the daily and weekly charts. Make sure to watch my SPY video, already published, for a much more detailed longer term look