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Quo vadis SPX?

It is extremely difficult to position a trade in this volatile market. Last week we saw the market holding both key levels – a 2064 resistance and 2040 support. After three weeks of losses in the market it wasn’t clear at all which direction the market wants to go. Would it be up or down? More selling appeared to be imminent.

But today, the market posted yet another big run up and smashed thru the 50 day MA running closer to its next resistance at 2093. Will this resistance hold the market from more upside move or will it smash thru?

And what about FED and its meeting tomorrow? Will they spook the investors into selling when they publish their meeting notes on Wednesday? Or will they pour more optimism to the market and investors would buy everything for whatever price?

Next few days will answer those questions and we will also see how our trades are doing. Should we stay the course or unwind some positions?

Here is my expectation for tomorrow. Let’s see if the market goes that way or not.

SPX expected move

Happy trading!

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