Key Takeaways

  • Tough to make much of Wednesday’s post-FOMC bounce; sell strength at 3900
  • Energy finally rolling over and further consolidation expected
  • Utilities and REITS have shown greater than normal weakness, but nearing areas to buy
The video in this report is only accessible to members
The video in this report is only accessible to members

While expected, SPX’s minor bounce into/post FOMC failed to accomplish too much that would give investors hope that a big rally was underway.  Unfortunately, despite the brief reprieve of the selling after five consecutive down days, the Elliott-wave structure seems to paint the last few days as a possible fourth-wave corrective move, as it’s been very choppy and overlapping.    Thus, I expect adopting a trading philosophy might make more sense for those short-term oriented vs. expecting any sort of material rally and/or expecting markets to start trending anytime soon. This translates into selling strength like Wednesday while using any weakness back to new lows to buy.   Key resistance above 3837 lies at 3900, while under 3875 likely allows for weakness back to test, if not briefly undercut, 3705 in the short run.  Happy Trading!

The video in this report is only accessible to members

Energy finally showing some consolidation after its steep run-up

The pullback in WTI Crude over the last ...

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