Hello Everyone,
Observations: FOMC day and a massive up date following the Fed with the major indexes posting absolute mammoth gains of roughly 3%, the one day biggest gain I've seen in years and the largest one day move on an FOMC day since 1979. As you know from my newsletter on Monday I commented that I was looking for upside in the market through the FOMC up to the 4300 area. The evidence I presented was multiple positive divergences on intra day 60 min and 2hr time frames on the indexes, long-legged doji candlesticks on the SPX and Dow, and divergences on various breadth indicators such as the NAMO and NYMO. Short-term the SPX closed up at this resistance target zone today and we may see a pullback from here, however I favor a higher low because of the symmetry break and more upside probing after. The resistance areas I'm targeting are the 4370 - 4390 area. Remember guys - these 'RIP YOUR FACE OFF RALLIES
' are what you see during bear markets when price gets very oversold and sentiment gets to extreme levels.
SPY and ES Systems:
As you know, one of the high probability SPY systems triggered on Monday, the CCI system, which I have two versions) close out today for a very nice trade! All systems for the SPY and ES systems (40 total systems) are back in cash. The systems like volatility and I'm expecting a lot of trades this year, and we've already had a ton.
Note: Several previous ideas on watchlist remain valid but simply have not yet triggered so continue to re-examine each night. Consider making a fresh top 10-12 setups each night and put on front page along with existing trades. My advice is to keep your total ideas to a manageable number (very few in volatile market). Lastly, it's best to wait at times for valid setups to form - sometimes less is more. Big moves tend to occur first and last hour and overnight sessions.
Matt
