After the Fed One Day Rally

They really love to hear Jerome speak. He is their sky pilot. Today back to the war.

The annnotations sum it up. Late in any trendline the issue of support and resistance has been fought and resolved and the price follows the trend (until it doesn’t) How do you know?

The MFI might decide to hold the line at the blue benchmark, and the A/D might resume its customary levitation, and the OBV might get off the snide. That one probably approximates the situation more directly.

The sidebars coincident to a bottom would be those gaps, they should put a hold on the downside. And the gold trendline which had a secondary test and showed support once should hold once more. Failed to reach the red heart on the rally but the same October effect in reverse probably applies here. The gaps signal exhaustion, while the volume does not signal capitulation, we now have those two recent deep red bars to measure the selling pressure against.

That October rally to new highs may prove to be a major reversal signal, and thus a rally off this bottom could lead to new highs.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s