Wednesday, July 28, 2021

SPX Update: Fed Day

Last update wondered if SPX would test the intermediate gray trend line again, and it did, where it was obligatorily rejected (again):

Near-term, bears would probably want to see a deeper retrace for the fourth wave of a diagonal.  Yesterday likely wasn't enough for that type of pattern -- so no deeper retrace may indicate no diagonal (at the very least, not yet):

In conclusion, still not much to add.  We're still waiting to find out if the market is going to try for an extended fifth, or instead complete in a more boring fashion.  Today is Fed day, which means if Powell sees his shadow, we can expect 6 more years of QE.  Trade safe.

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