If we take this 10686 on two closing basis we will move like a bullet up, look at the DOW weekly chart the formation is tight and likely to break up or down solid, on weekly chart it is a very important formation..
I would think that .25 or .50 the market will most likely move higher I will have occasion to make money on the short side either below 1282 on SPU or above 1365 break on SPU I would think we will move to as far as 1455 on SPU.. so here is 172 point band, if we have a test of 1282 after FOMC we will go up to 1455 area from the test of support if we break 1282 we go and test as low as 1230. If we rocket up we most probably fail at 1410 to comeback to 1282.. so this market has lot of possiblilities, end of FOMC meeting is just the beginning of rate worries, if we have one we will worry for the second if we have two we will worry oh are the things so bad if we have none we will have bigger problems... the Fed is not reactive.. the issue is that do we really havew infaltion.. if Economist was right they should have read it right before, it is wilds man guess, the economy is under control MR AG knows it well, we don't have inflation productivity, ECI capacity utilisation M1 M2 all points towards benign core infaltion, but it market we need constant worries we make money on them, our job is to interpret in right..fwiw |
