US markets have been hovering around their Weekly lows since moving down here on Tuesday, and they haven’t budged from this level.This move was modeled to come down to this level early this week, and then reverse off these levels and head back towards the Weekly highs.
I’ve based this price action because of the similar pattern around November lows 2007, and it was around these lows back then when US Fed cut rates.
Therefore any rally upwards needs to be pushed by a Fed announcement, because I can’t see how it’s going to happen any other way..
The Tuesday down move was a simple trade taken whilst price was trading below the 5-day 50% level, but there is no simple trade on Wednesday….Below Weekly supports and all bets are off…
So what happened last time?
The market moved up off its Weekly lows, hit the 5-day 50% level, reversed back down in the lows again, and then late in the day rallied back above the 5-day 50% level closing above it…..
Then on Thursday it drifted back down, hit the 5-day 50% level and then rallied higher into Friday…..
So this is a pattern that I’ll be watching for…..but it needs a kick in the backside by the Fed...
Posts
