Wednesday, September 18, 2019

SPX and INDU: Market On Hold

So the market's been in a holding pattern since Friday, clearly waiting on the Fed announcement before seeming to commit itself to anything.  My instinct is that it still needs at least one more high (which could in turn generate much higher highs), but it's not really clear-cut in the charts, so take it with a grain of salt.

Also keep in mind that Fed days can get whippy, so a fake-out breakdown followed by a whipsaw back up wouldn't be unusual -- nor would its opposite (a head-fake breakout followed by a whipsaw back down).  Such is the joy of trading a Fed day.

Of note, INDU and SPX have both held the first important trend line I mentioned last update:

SPX tagged the trend line less directly, after running a sideways move into it:

Bigger picture, this is still a meaningful inflection zone:

In conclusion, nothing much has changed in the past few updates.  Trade safe.

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