Today, if futures are correct, SPX is going right back into its triangle formation; after having attempted to break out both to the upside and the downside.
Everyone notice the big head fake today?
After the announcement GS or whoever ran all the stops to the downside before reversing and moving markets up. What games they play and how do they continue to successfully make the same play time after time?
Today stocks decisively broke out of the triangle pattern to the upside - very bullish except for the lack of volume.
If Yellen talks dovish tomorrow and doesn't raise rates, 2050 should be a piece of cake. 2100 would be even better.
Then we can wait for everyone to start worrying both about the next fed meeting where they might raise rates and if there will be a government shutdown - setting up another excellent shorting opportunity.
Of course if Janet does raise rates tomorrow we'll have to play it by ear. Perhaps today was just a head fake after all or just shorts locking in some profits.
Stocks are acting as if someone has leaked the news that the Fed isn't going to be raising rates tomorrow. Either that or a head fake. Tomorrow we find out, although I'm sure that Goldman Sach's already knows.
This morning the HOD was 1984. Will that be it? Will 1985 hold? Will the bulls really be brave enough to run stocks up before the fed announcement?
Nice ... looks as if it is going right up to resistance @ 1985. Now we wait for Yellen to see if the bulls can take out overhead resistance or if stocks will turn and crash from here.
Wonder if the big boys will do their normal head fake after the announcement taking stocks in one direction for a few minutes before a sudden sharp reverse. Thursday will be fun!!!
Overhead resistance doesn't seem to be until 1985, but stocks appear to be stalling at 1970.
Bad manufacturing report means the Bulls are all giddy since they think that means there won't be a rate hike. Maybe they're right. If so, one would expect a short squeeze and that's what we appear to be getting.
I'm still staying on the sidelines until after the Fed announcement. Too many unknowns right now. Hopefully Yellen will not raise rates and stocks will pop. Then after the initial enthusiasm, they will drop again as everyone worries about a rate hike at the next meeting. Safe short play then.
Almost wondering if the market might do right here what it did previously for months - just go sideways - frustrating everyone. The Death Triangles haven't produced anything yet.