S&P 500 – Post FOMC Spike Retraces All of its Gains
After exploding higher post FOMC spike, the major index has sold off all of its gains, and then some. Notice in the box in the chart how the selling after the false break above 1730 has been quite impulsive, with every relief rally being meek and quickly rejected. The index is currently sitting on a major support level at 1700/1695. I’ll look to sell a corrective pullback towards 1710/1712 which would ideally line up with the falling 20ema. This would form an LH (lower high) and possibly signal a deeper correction. Downside targets would be 1695 and 1680 (green horizontal zone).
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