The SPY opened with a large gap-down this morning & is currently down -1.67%.
Things to note:
- Bearish cross of the 9 below the 21SMA coming up @ 1:30PM EST
- Price still below BF channel
- Bear target #1 complete @ $388.60
- Bear target #2 gap @ $377.80
- Bear target #3 gap @ $365 & re-test June low
- RSI is oversold on 4HR TF
As we're going into the Sept 21 FED FOMC & rate raise, we're looking for the market to bounce at some point, giving the DXY some time to cool-off & re-test support.
If this happens, I would expect the market to dump with the FED on Wednesday.
IF we continue crashing into the FED, I would expect the opposite.
Basically thinking the following:
a) if risk-on assets @ major support with FED, expect bullish reaction
b) if risk on assets @ resistance with FED, expect bearish reaction
This isn't bullet-proof, but makes sense from a technical perspective.
Things to note:
- Bearish cross of the 9 below the 21SMA coming up @ 1:30PM EST
- Price still below BF channel
- Bear target #1 complete @ $388.60
- Bear target #2 gap @ $377.80
- Bear target #3 gap @ $365 & re-test June low
- RSI is oversold on 4HR TF
As we're going into the Sept 21 FED FOMC & rate raise, we're looking for the market to bounce at some point, giving the DXY some time to cool-off & re-test support.
If this happens, I would expect the market to dump with the FED on Wednesday.
IF we continue crashing into the FED, I would expect the opposite.
Basically thinking the following:
a) if risk-on assets @ major support with FED, expect bullish reaction
b) if risk on assets @ resistance with FED, expect bearish reaction
This isn't bullet-proof, but makes sense from a technical perspective.