Wednesday, June 16, 2021

SPX and INDU Updates

The market has been killing time in a sideway-up grind for nearly a month, but presumably will seek some resolution after the Fed announcement today.  SPX did manage another new high, creating yet another larger subwave that looks like a "three."

INDU, again, did not play along, however, and remained roughly where it was in the last update:

In conclusion, there really hasn't been much to say about this market over the past month.  The market is still wedged into an apparent "pop or drop" pattern heading into the Fed meeting, but diagonals can always tack on another wave (while remaining diagonals) while, conversely, seeming "diagonals" can sometimes be b-wave highs (hence my warning about 4192-4207 as potential support)... so the point I'm getting at is that even if we see a quick strong move on the Fed announcement, a fake-out is possible before the real "pop or drop" begins, so be careful if trying to trade such potentials.  Trade safe.

1 comment:

  1. This Time is Different, new paradigm, and now Transitory. OIL, housing, cars, JOLT, PPI, CPI, Lumber, Copper all in transitory phase. When the world opens up to post pandemic activity all these spikes will be deflated? really? If the laws of gravity in space apply stock market should be in free fall by end of Summer. Bond market seems to have made the biggest mistake ever and has a lot of catch up to do.