The futures were dropping, the markets opened lower and continued sliding down on fear (and stupidity), but then at around noon, one unimportant FED member proclaimed that he was in favor of a 0.25 rate increase rather than 0.50 and the markets rallied. Completely worthless news and the markets go crazy about it. This shows you how stupid and irrational investors are today, obsessed with the FED and creeping about nothing. Yesterday, they were all panicking about the higher and longer comments from one unimportant FED member (Waller) and today they are all cheering about a different unimportant FED member saying the exact opposite than yesterday’s clown (Bostic). If one didn’t have his own money in the market this would have been a funny comedy. Right now it is a tragic-comedy.

 

 

And so the market recovered all losses and ended in the green. That is good, though, as Bostic’s comments actually worked as a catalyst for the oversold condition and the market bounced where it should have bounced. It recaptured a losing 200-day MA and closed above it as well as above the other support lines. The biggest improvement can be seen in the Ichimoku chart below. Today, we were losing the cloud as the price smashed below it which would be bad. But then we bounced and closed above it. We now need this to hold.

 

 

The weekly Ichimoku shows no improvement:

 

 

Today, the weakness turned into a strength. We had an initial drop (and should have finished down) but then the markets recovered and rallied. Looking at the volume profile, it indicates that the market is actually trading efficiently. Tomorrow, we may see some choppy trading as bears may try to snap the rally from today’s bulls. We may also gain momentum and rally higher.

 

 

This is a delayed outlook. If you want to learn more about our SPX weekly analysis, subscribe to our weekly newsletter.