SHORT TERM: FED raises rates, DOW -107
During the first three days of this week the Asian markets have gained 0.1%, and European markets have also gained 0.1%. US stocks gapped down at the open Monday, declined to SPX 2913, bounced around until Wednesday morning’s 2916 low, and then rallied into and after the FED’s rate hike to 2%. After hitting SPX 2931 just after 2pm, the market reversed and slid to 2903 just before the close 2906. FOMC volatility.
It looks like Minor wave 3 did end at SPX 2941 last week. That five waves advance was: 2863-2802-2917-2864-2941. The decline from that high hit SPX 2913 on Monday, overlapping 2917. But the today’s decline below SPX 2908 was more convincing that Minor 4 is underway. If it is, the market could drop 60-100 points from the SPX 2941 all-time high. After that Minor wave 5 should kick in, and the market should take out, or match its highs. Short term support is at the 2884 and 2858 pivots, with resistance at the 2929 and 2995 pivots. Short term momentum ended the day at oversold. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend inflection point