The market rallied right into my target level where wave (5) equaled wave (1), and at a major round number resistance level at 2100. From there we now see some pullback, but I feel it's temporary.
Fed day is tomorrow (Wednesday) and so the market should be fairly quiet up until the announcement is made later in the trading day. Looking at the wave count though, and price structure, it looks like the market will go down before it goes up. So a drift lower into the Fed announcement towards lower channel support around 2066-2075 might be a good area for the market to find support and perhaps rally on the actual Fed announcement itself. This is a pure guess on my part as far as the timing of all this. But the wave structure is indicative of a rally that is still unfolding so I will be ultimately be looking for higher levels in the near future.
There are several different proprietary bearish signals on the Dow and S&P cash indexes, as well as their corresponding VIX charts at various timeframes, but there are no confirmations that the bearish move has started. So more time and price action needs to unfold before these bearish signals can be in a position to be confirmed and I can consider getting aggressively short. Until then, I'm a cautious bull on the overall stock market, but an short several highly selective stocks through options spreads.
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