FOMC coils the markets spring even tighter for the big move ahead

Welcome back! As you know, the feds cut interest rates again today. It led to an initial sell off in the market and it went ahead and came back roaring ahead. With all that volatility, let’s talk about where it put us.

Looking at this more clearly, we take a look at the various stock indices out there. You’ll notice that we had that sell off and it came back to rising support and then it came down very close to previous accumulation bars that we had in the backdrop. Each of those accumulation bars went through just slightly and the market found a natural base of support again right in those areas. What we have now has wound us up even tighter. Today was an accumulation bar, yesterday was an accumulation bar and the day before that was an accumulation bar. But, the days before that was distribution, distribution, accumulation and distribution. It’s tightening, tightening and waiting for a big explosion. We’re watching where these accumulation bars are falling and the distribution bars are falling. We’re looking for a breakout/breakdown from those areas there. If we take a look at the Dow, you’ll see the same thing – back and forth, back and forth. This is a market on the edge looking for a large-range move out of these areas. I’ve pointed these types of things out to you in recent past. When we’ve had those, then we had the next charge out of those ranges. I’m watching these very closely. I’ve said repeatedly the Dow 27000 and with this news-driven market, we’ve pushed through. It continues to be a key market area here that we’re watching ever so closely to see if we could breakout to the upside. Every time it gets sold off, someone is buying it back up. At the same time, there is that overhead resistance. All of these indices have distribution. We’re finding a market equilibrium but the market’s volatility is going back and forth and it’s tightening that noose and we’re looking for a breakout in those areas.

That’s what’s happened in light of today’s action. The initial selling and retracing puts us right back on par with the previous accumulation and distribution bars. We’ll keep you informed as we’re watching these key levels and looking for the breakouts ahead so stay tuned.

Have a great night! We’ll see you in the upcoming videos!

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