Traders have debated for ever about when news is priced into the market. Some say it is priced in before it is released others say the market adapts quickly after the news comes out. In the case of the minutes from the Feds latest meeting it seems it was clearly priced in. We saw another down day but only after the indexes spent the whole session teetering at the same level.
Last Friday we spotted a clue that the recent rally was about to turn and the clue didn’t disappoint. (check out that article here)
After a long weekend the signal proved true and we have seen a slide in this short week. So what next?
Well, let’s take a look at what the same chart says now.


We can see that the bearish MACD Crossover played out and we have watched the S&P drop and stay below its 10 day moving average. It appeared to be looking for support at its 50 day (the purple line) today. Definitely a solid start to a downtrend.
While one would have expected the Fed to move the needle a little more, it really wasn’t that big of a move. It this is just a pullback and the rally is going to restart then a move up today will be a first confirmation. If it breaks below, then we can expect things to continue to slide.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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