Hello Everyone,
Quick comments: Strong market volatility with huge intra day swings (par for the game with high VIX readings). The VIX closed outside of its upper Bollinger Bands for a 6th consecutive day. The VVIX closed inside of its Bollinger Bands
FOMC Day: The initial Statement was interpreted as dovish, however Powell's afternoon discussion was interpreted as hawkish and the market sold off strongly after the initial reaction of the statement and Powell began speaking.
For the market it had a nice rally going into the FOMC, which happened to be resistance on most of the indexes and sectors. Many sectors stalled out near their 9 EMA's, so it was a logical place to place a hedge or reduce long exposure at prior to the FOMC.
As far as the market I see a couple options; 1. a 4th wave completed and new lows are coming to complete a 5th wave move down. 2. The SPX retraced 61.8% of the move off the lows and had a weak bounce off that, so it's still possible that the pullback was a wave B of an ABC pattern
have a plan, stay focused, don't follow too many names in this environment
Matt
