Stock Market Fed Decision Day
Stock-Markets / Stock Markets 2015 Sep 17, 2015 - 03:08 PM GMT
Good Morning!
A colleague, Gary, called me yesterday to comment that this formation might have a better fit as a Flag or Pennant formation instead of a Triangle. A glance at the two-hour chart shows an upward tilt that would agree with that assessment. The Wave Structure also fits, whether a Minor Wave 4 or an Intermediate Wave (B), which is the alternate view.
The Premarket is down this morning, but still well above the Flag trendline. We may still see a push higher through the morning hours with a turn sometime before the Fed announcement. The way it appears, we may see a turn down in stocks, regardless of what the Fed decision is. The burning question of the day is, “When?”
ZeroHedge comments, “The long awaited day is finally here by which we, of course, mean the day when nobody has any idea what the Fed will do, the Fed included.
Putting today in perspective, there have been just about 700 rate cuts globally in the 3,367 days since the last Fed rate hike on June 29, 2006, while central banks have bought $15 trillion in assets, and vast portions of the world are now in negative interest rate territory.”
TNX is easing back down, but the Wave pattern leaves me trying to decide whether the retracement rally is over already. A decline beneath 22.64 may confirm that observation, while a breakout above 23.03 suggests it goes higher, if only for a day or two. If volatility picks up this afternoon, we may see both happen within a very short time span as the market attempt to distinguish which way to go.
Regards,
Tony
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Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.
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