SPX’s Roller coaster ride
The market gapped opened double digits without a shred of news. Next thing it tried to break past the 21 day moving average and clearly broke the downward trendline. Than the Financial Times reported QE program being tapered off this Wednesday. The market started selling off and came down to hit the downward trendline as in the video and bounced higher. This has been a roller coaster ride.
All eyes are on Wednesday’s announcement and the FOMC meeting and the Fed’s decision to change the QE program if any. It has become so important that the market is caught up in a wedge which really represents a period of indecision.. This indecision will continue unless SPX breaks out to one side. Next 2 days expect choppy sideways and up and down action. This can frustate longs and the shorts on
Some major stocks are also caught up in this non trending period. GOOG for example is sitting on its 21 day line and waiting. NFLX however gapped up and didnot close the gap. Higher prices may be coming soon on this stock as it got a fresh new content deal today.
Once we are past this Wednesday, we shall see see clear skies to sail up or down..