Patrick: On further consideration regarding the drop just before the Feds announcement, I think my original conclusion is the one I will stick with. However you brought up valid points.
I suspect that the Big Boys plan was in place for today. No matter what the announcement, the price action today would have been similar.
I don't think the S/MMs would make a move that would cause them to accumulate additional shares, if they were not sure the Market direction was up from there, at least short term.
As I stated in a post over the weekend,...My GUT FEEL is that the Market (as measured by the DJI) will rally finding resistance at the 9100 area. And, if penetrated will find final resistance in the 9200 area. (Old Bull Support Trend Line derived from Theoretical Daily Semi-Log Chart) Then the Market will begin a more aggressive pullback. The depth of that pullback may determine if this was a Bear Rally or NOT....In hindsight, I should have added (no matter what the announcement)!
I don't think the intention was to lock out investors from establishing short positions at the higher levels, even though that may have been an unintentional effect!
If the Market does as suspected and corrects from here, the Talking Heads can always justify the reversal, with the usual…”after the Market digested the news” statements.<g>
By the way, you might also notice that they closed the Gap Down on the SP8Z from last week, taking out a "magnetic" attraction that in effect allows the market to come down more than one might expect.
As I don't follow the SP8Z closely, thanks for pointing that out. It seems as if a lot of loose ends have been trimmed, paving the way for a correction or downturn.
Time will tell...<g>
BWDIK
Regards,
LG
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