Wednesday”s FOMC statement was greeted

Wednesday”s FOMC statement was greeted by a deep sell-off. It had originated from a bias-up environment, developing during the otherwise noisy noon hour, touching the afternoon”s bias-down signal without triggering it. Extending any lower would have extended down a lot, because that would have required new sponsorship. Instead, all available selling pressure had been expended. Retesting the low”s oversold RSIs allowed allowed a probe of fresh highs.

Now, have the tables turned? A lot of buying pressure has been expended, it has been very productive, and it was expended largely during the weak-handed environment of a news reaction. Perhaps the tables have been put in storage — the WedEX signal didn”t trigger, so trending into and out of the weekend isn”t yet signaled.

The pattern is vulnerable to resuming Wednesday”s post-open decline. Almost any delay in rallying Thursday above 2095 or from 2085 support would be likely at least to probe under Wednesday”s 2080 low. There is no assurance of recovering from fresh lows. But rallying would likely find little resistance until probing well above 2100, and then only temporarily on the way to new highs.

Here”s more details in the post-market Wrap recording:
https://roddavid10.mitel-nhwc.com/join/cxwzbcy

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