Well waddya know? The fed stood pat and the market went lower. Not surprised because this market is capable of anything and it loves when it can make you look like a drunk walking in traffic.
I’ve had these trendlines in the chart above there for a reason. Isn’t it amazing that the SPX hit resistance ( to perfection) at the top of the channel and backed off? See the green arrow. That’s why I so love charts. I’m not saying the up move is over, but I think tomorrow could be more important than today, as the market players (drunks in traffic), may need the overnight to process what happened. Or didn’t happen.
The exact same resistance was hit on the exact same patterns on the Russell and the Dow today. See charts below.
DOW
IWM
Identical.
I’m a chart geek and I find it fascinating that they were all rejected almost to perfection. Right where they were supposed to.
I’m also very upset with myself for not having wider stops on my etf shorts, but what are are you going to do? I had a feeling they could rally to the top of the channel and fail. I know I’m writing as if I expect a huge selloff, that may not pan out, but what I’ve been saying over and over, the chart action is horrendous and its the worst I’ve seen them look in a long time.
Bottom line, those three charts above are all glaring bear flag/wedges and it concerns me deeply.
I was tempted to get short some thongs at the close today, but figured I’d give things another day for the market to show me something.
I took some profits on some things today, so head over to the p&L tab if you are following at home. Lets see where they take us tomorrow.
See you in the morning.