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$SPX market expectation for Tuesday, May 26th

(05/25/2015 HS) – On Friday, last week, I expected the market to move higher. I expected FED to be taken positively by investors as they would see that FED will most likely postpone interest rates hike due to slowing economy. I didn’t have time to watch or read what actually Yellen said, but overall results would be that FED is ready to raise the rates, probably in September, this year. I think such step would be bad for the US economy and slow it even further, but I am not here to judge or predict that. It’s just my guts.

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However, the market acted mixed on the news. The investors took it positively at first and the market went up, but it didn’t have enough strength to sustain the move and by the end of the trading session, it fell down.

Such weakness can be detrimental for the recent break out and stop it where it began. Although I do not like it myself, I think this weakness will continue and investors will continue freaking out and selling equities. For tomorrow, I expect the market to go DOWN.

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