Following
the script
- and a buy signal from Fred
Stocks rallied after an early morning panic
sell-off. Ironically, yesterday's 90 point
gain on the Dow was the smallest gain this week when
you look at intraday charts. Monday the Dow
was up 130 points before collapsing, and Tuesday saw
a 100 point gain disappear. So all three days
have seen huge intraday reversals as volatility is
in full force. That means we don't want to
leave our guard down.
Yesterday we talked about watching how the market
reacts should we see the S&P 500 move down to the
1482 to 1487 area. We said a quick bounce
would be a good sign for the short-term, but if the
index lingered below 1487 it would be an ominous
sign. We got the quick bounce. The S&P
fell through the first couple levels of support, but
that last one we drew the other day, which is
parallel to the double top, held up. The close at
the day's high, and a higher high from Tuesday's
close, is setting up a nice day for today - but we
have an obstacle in the way.
Chart provided courtesy of
www.decisionpoint.com
At 2:15 ET today we get the Fed's decision on
interest rates, and equally important, their policy
statement. That makes today a very tricky day.
Any hawkish comments and we could give back all of
yesterday's gains. A more positive outlook and
we could be off to the races again. The
problem is, we can't do anything about the market's
reaction until Friday morning - with an effective
day of next Monday. That is troubling.
Let's see what happens.
If the script we drew up plays out as well as it did
yesterday, perhaps we will see those July / 4th of
July seasonality charts play out equally as well,
which would mean market strength through the end of
next week.
Trader Fred's
TSP
Trader System gave a buy signal at
yesterday's close of business. Did you want to
get on Trader Fred's
Email Alert
List? We'll send you an email when the
system generates a buy or sell signal. Read more from Fred on the
system
page.
The
EbbChart System
is in I-fund today and the rest of the week is
showing very few stop signs. Read more on the
ebbchart page.
That's all for today. I am currently 100% S
fund. See you tomorrow!
|
China Watch
Shanghai Comp:
4,082
Recent High: 4,336
Resistance:
4,231 |
Today
+0.08%
as of 1:00
AM ET |
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