Rob Reviews Goldman Sachs And The Quiet Markets Pre-FOMC

Welcome back everyone!  It was a fairly quiet day in advance of the FOMC announcement tomorrow afternoon.  We still have an inside day on the S&P, RUSSELL, and NASDAQ.  We have pretty tight days on the DOW and DAX.  At one point I was even switching over to look at TESLA this morning to see if any of the volatility picked up.  We really have to see what is going to come out of the FOMC.

I don’t expect that much will come out.  I want to see how the market will respond to that.  Is it going to be bullish?  That could be where no news is good news and the market takes back off.  If that happens I will want to see it get above today and yesterday’s highs for long side trades.

That is particularly true for the three domestic markets that are struggling today.  The DOW is holding its own right now.  I want to see if that will continue into tomorrow’s session.  I will be looking for fresh higher highs.  The real key will be on the other three indices.  I am not going to get super bullish on the DAX until we get above the 12600 level.

The Bonds are really taking it on the chin in advance of the FOMC.  We never could really break above the resistance.  All it did was make more distribution within there.  We just could not make the key areas support.  It is much like the situation with Apple.  I won’t even mention that again tonight because we have talked about it so many times recently.  The Bonds failed to make these levels support and rolled over and pushed us back into long term weekly support bands.

I have been telling you about the 50 dollar level on Crude Oil.  With the rollover, we are going to be focusing on the 51 dollar area.  We are stuck at the 50 dollar area today.  The big level to beat now is 51 because that is going to be long term daily resistance.  That will also help us pierce long term weekly resistance.  That will also offer up a lot of room to grow.  That 51 level is going to be the sweet spot for swing and intraday trading.

Goldman Sachs has been in quite a consolidation.  You have basically been sitting on dead money depending on where you bought into this.  It has been sideways for the past couple months.  I would prefer that it breaks out of the key resistance bands set several weeks ago.  Otherwise, break down below the notable level here.  Those are the two areas.  This is pretty well defined trading range at this point.  That causes some people to want to do Iron Condors.  That is basically taking bets that the market won’t break out.  By the time you get something that is extended this long, it is usually due for the breakout.  That is why I wanted to make people aware of this.  People have been so anxious for so long.  The more anxious people get, the closer we are to an actual break out.  We do have this distribution up here on the weekly chart.  That is really an area I want to get above from a long side perspective.  If that happens with Goldman Sachs, the overall market is likely to see higher highs.  If Goldman Sachs fails, the market is likely due for a significant pull back.  I am going to be watching that in the days to come.  The answer for me right now is to do nothing.  Let’s see if the FOMC can help the cause tomorrow with a break out / break down.

I hope you all have a great night and I cannot wait to see you in tomorrow night’s videos!

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