Quick Notes: The FED Giveth and one day later the market Taketh away - that's tonight's theme. In looking specifically at the SPX on Tuesday, we needed to see one more oscillation up to complete an impulse (9 total waves of the early March lows) which transpired yesterday. That alone did not imply an immediate reversal today but it simply qualifies as an impulse. The real question going forward is if this uptrend can subdivide and extend further over time. For
this market to extend higher, I believe the techs must stabilize in the coming days and begin to perform better as the other sectors have carried the baton for quite some time and are showing some signs of strain.
For now the key pivot on the SPX remains 3723 (March lows). Overnight the rates on longer term bonds spiked up with the 10 year rate rising to around 1.75% which weighed heavily on the tech sector and other growth stocks. As I stated on Tuesday, this uptrend has been quite choppy and not easy to trade over the past week after the bounce. Trade ideas have been largely hit and run with many failed breakouts (at least upon their initial attempts). Sometimes "less is more"
- what I mean by that is to simply focus on fewer setups which you can do more effectively. If you are in some swings for the recent lows - continue to mange those holdings in accordance with your plan.
Please take a moment to look at the trade ideas.