SPX, NYA, and Powell Updates

On Wednesday, The Gnome Jerome emerged from his garden and announced the Fed would not be raising rates, cutting rates, or tracking crime rates.  "In fact," he said, "we will no longer even be using the term.  From now on, it will be known as That Federal Funds Thing, and it will be expressed as a trinary fraction."  

Powell bitterly took a few questions, refusing to even clarify what the current Federal Funds Thing is, except by shouting, "I'll give you a hint: it starts with 11!"  He then laughed maniacally and left.

The market initially reacted with confusion, then (as reports streamed in from mathematicians) realized that nothing had actually changed and sold off, before stabilizing a bit lower to end the day.

Which means SPX is still holding its first key zone and hasn't revealed anything new despite The Gnome's offbeat comments:

NYA has continued to sustain trade below its first zone:

As I said last update:  

We'll see if [NYA] is a warning to bulls (it may be)… or a red herring (since SPX is the stronger barometer, and it's still holding its key zone).

The practical implication from the behavior in NYA is that NYA seems to suggest that if SPX can sustain trade below its first support zone, it will then most likely reach its next downside target (the lower boundary of the red channel).

Beyond that, nothing much to add to the prior week's worth of updates -- those warnings and caveats still stand.  Trade safe.