The market remains stuck in the 1470 -1490 congestion zone. Yesterday the cash S&P500 index formed an inside day as the downward moving price pulse from 1523.57 ended at 1468.23. The price high of 12/11 is now a fractal. After the large move down after the Fed decision on Tuesday and another downtrending day Wednesday the market has paused (less price movement) on lower volume. Market participants have lost interest in the decline for at least the moment as we wait to see which way we break from the 1470 to 1490 (moving averages and inverse head and shoulders) “decision zone”.
As there has not been much new information in the price action all I can do is repeat from yesterday “As there are no definitive “sell” signals in my technical indicators I have to continue to believe that we will break upwards out of this support zone. I will keep the stop on the SPY Long position at 146.30.”
For grins I present my Elliott Wave count on gold.
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