Post FED Life

I am now long the SPY. My buy stop was at 154.45 but did not get filled until 154.91 and now the GLOBEX has the s&p’s down over 7 this morning. Sheesh …… what a life! My stop loss is at 152.83.

Another volatile FED day as we formed an outside price bar in the cash S&P500 on Wednesday. The price pulse downwards from the 10/29 high completed at yesterday’s low where a new upward pulse began. Yesterday I said that I was looking for a very quick and short pullback with a new move upwards into at least Friday if not early next week. So far so good.

After an upwards start to the day yesterday we sold off on the FED announcement but found support at the short (red) moving average and then rallied again. Here is one less worry for those of a bullish persuasion: the Derivative Oscillator has moved back cleanly across the zero line. There is no longer the risk of a “failure at the zero line”.

The only way I can be bearish over the short-term (next few days) is to count the move from the 10/24 low as a completed five wave impulse move. That would imply a pullback over the next two to three days. Even if this were to occur I still envision a move to new highs afterwards.