The indexes are at a vital point on many time frames with horrible breadth and increasingly historically bad economic data. But even more troubling is how the Dow Utilities looks right now. I pointed this out months ago, but it's been leading the greater market by a day or so and has made the trend movements very clear while trading within a range the looks suspiciously like a huge bearish pennant. It tagged the bottom of my trendline perfectly a couple weeks ago and retook the key SMAs, which indicated for me to go long for the time being, but has now bounced down and will likely have one more attempt to stay above an extremely critical level.
With the bond market, precious metals, and eurodollar futures indicating something big, I can only surmise that the FOMC meeting this week could be a catalyst like it was at the start of March and back in May 2018. JPow knows it too, with his increasingly ridiculous comments. He's getting desperate. Is it only by chance the all of FAANG has their earnings right after? Maybe lol. We could see another rally, but just be warned that the risk is actually to the upside right now.
Commento
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Might see a "perfectly" timed Big Tech squeeze instead here
Commento
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Front end of the yield curve is collapsing, very, very bad sign.
Maybe Powell will announce the nationalization of the stock market and we can see 4K soon!
kaxo1
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@ProfitHarvest, I guarantee you that he wishes he could haha
RichR333
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@ProfitHarvest, AHAHA! Might as well right... Trump would love that stabilization.
Svetul4o
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The SPX is forming a head and shoulders on the 4H and the DOW utility average looks like a triple top formation on the weekly chart. Will someone hold the bag please?
kaxo1
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@Svetul4o, Yup, the market needs one last hoorah, but it's very unlikely to get it here. Every market has lined itself up perfectly just in time for this Fed FOMC meeting to be the catalyst for another major selloff in my opinion. There's going to be an exorbitant amount of bagholders this time lol the hedge funds are going to be sending their regards after getting blown up in March.
Svetul4o
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@kaxo1, Agreed. The bond market has been coiling for months now. The price chart for the 10 year broke its resistance a few days ago. What ever the Fed does it's been already priced in.
kaxo1
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@Svetul4o, Yup, and tbh I'm going to disagree with you on the last part. If their actions were priced in then the markets would've crashed again already lol, I think these institutions just give JPow the benefit of the doubt and just wait around for the next FOMC so he can prove once again that he has no clue what he's doing and reassure them that they were right, which is why they consistently result in dollar price spikes afterwards
Svetul4o
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@kaxo1, I think in terms of the SPX it's more like buy the rumor sell the fact. Whatever stimulus they are going to announce has been already priced in. Big banks have probably set their short positions weeks ago. Bonds have barely moved in the past months which means (for me at least) that smart money is front-running the Fed. With the wide public in the face of robinhooders engaging willingly in the market this is probably the final flashing red light that one needs to get out.
In any case it's gona be ugly.
kaxo1
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@Svetul4o, Oh yeah definitely. Despite what JPow keeps telling everybody, they are completely reactionary. Otherwise the global financial market meltdown in March wouldn't have happened. The fact that he went on 60 Minutes and had the gall to say "we saw it coming" is just downright hilarious haha
Svetul4o
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@kaxo1, The yield charts don't show it yet but the 10 year price chart is well above any resistance and moving fast since yesterday. Stick a fork in this market. It's done. Guess what ever it takes is not enough anymore.