As expected markets is very choppy over the last sessions and I dont expect markets to make a big move either UP or DOWN before after FOMC which is today. I think today should be very interesting and especially after the FOMC. Remember - the first move after 2:15 pm is often the "fake" move, that has been the case for the last several FOMC meetings. So I expect the same pattern today, if markets goes up after FOMC - then markets is likely to drop and if markets starts moving down, then we should move up. But all in all - I expect markets to make a nice sell off - probably not totday, but beginning today and then last over the next few days. Markets has found support near MA(20) and bounced back up, I expect us to reach that level in SPX again 1274 and then flush down below it and start the correction.
Russells is still very very weak and shows no signs yet of a bullish move up. But remember the stochastics is oversold now daily chart , but can stay oversold for WEEKS or months. Only thing you need to watch is if Russels can break above 790 level with good volume. If we see that I would recommend cover shorts, but until then the trend REMAINS down in the Russels and NO NEED to fight the short term trend. If Russels make a close above 790-792 and I would say for a confirmation 794 - then I would go long small caps cause the trend will then change.
Overall it looks pretty much like April top before flash crash - markets choppy as expected over last weeks up and down.. up down... but finally thats a toppinc process and then they will start to flush out. All other indexes had began to make a correction especially in Asia, and China and India is often leading now....
Still very bullish the dollar as it came to a nice retracement support now and should be ready for a big move up after FOMC. My target for SPX this week is 1250-1260 by Friday , so lets see if we can get near this level, and find some good support.
Have a nice day
Russells is still very very weak and shows no signs yet of a bullish move up. But remember the stochastics is oversold now daily chart , but can stay oversold for WEEKS or months. Only thing you need to watch is if Russels can break above 790 level with good volume. If we see that I would recommend cover shorts, but until then the trend REMAINS down in the Russels and NO NEED to fight the short term trend. If Russels make a close above 790-792 and I would say for a confirmation 794 - then I would go long small caps cause the trend will then change.
Overall it looks pretty much like April top before flash crash - markets choppy as expected over last weeks up and down.. up down... but finally thats a toppinc process and then they will start to flush out. All other indexes had began to make a correction especially in Asia, and China and India is often leading now....
Still very bullish the dollar as it came to a nice retracement support now and should be ready for a big move up after FOMC. My target for SPX this week is 1250-1260 by Friday , so lets see if we can get near this level, and find some good support.
Have a nice day
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