Posted by chartboy on 16th of Sep 2020 at 02:28 pm
Cha-Cha-Cha....for a long time that is the phrase we have used
for the post Fed reaction. More times than not, you will see a
primary reaction, which is then strongly reversed, only for a third
reaction to form in the original direction. The first and third
moves being the “correct” direction.
Posted by chartboy on 16th of Sep 2020 at 03:50 pm
In this case, the primary move was up in the intraday time frame
post-fed. However, there was an overhead R2 pivot and the 50% SPX
retracement which were the targets for that intraday move. As
longer time frame MAs/trends were exhausting/exhausted, they
eventually exerted a greater influence and we rolled
over.
Posted by fredsaid on 16th of Sep 2020 at 03:55 pm
Good explanation ! I wonder if we've made our B bounce
high at 3428 and it's bombs away tomorrow or if the QQQs just
continue to rotate into other sectors.
Knee jerk appears to be
Posted by fredsaid on 16th of Sep 2020 at 02:10 pm
Knee jerk appears to be down...needs another 15 mins... then go the other way.
yep, never react to those
Posted by matt on 16th of Sep 2020 at 02:12 pm
yep, never react to those first couple reactions following the FOMC
Cha-Cha-Cha....for a long time that
Posted by chartboy on 16th of Sep 2020 at 02:28 pm
Cha-Cha-Cha....for a long time that is the phrase we have used for the post Fed reaction. More times than not, you will see a primary reaction, which is then strongly reversed, only for a third reaction to form in the original direction. The first and third moves being the “correct” direction.
You nailed it!!
Posted by cozz101 on 16th of Sep 2020 at 03:12 pm
You nailed it!!
You have to give it
Posted by fredsaid on 16th of Sep 2020 at 03:14 pm
You have to give it a full 30 mins...40 mins in today's case.
Kindof a Cha-Got-Cha...
Posted by disciple33 on 16th of Sep 2020 at 02:40 pm
Kindof a Cha-Got-Cha...
That is exactly the intent,
Posted by chartboy on 16th of Sep 2020 at 02:43 pm
That is exactly the intent, to rinse out weak hands before the trend move.
Sorry, just signed in. So,
Posted by mdgfain on 16th of Sep 2020 at 03:20 pm
Sorry, just signed in. So, is the primary trend down? Thanks.
In this case, the primary
Posted by chartboy on 16th of Sep 2020 at 03:50 pm
In this case, the primary move was up in the intraday time frame post-fed. However, there was an overhead R2 pivot and the 50% SPX retracement which were the targets for that intraday move. As longer time frame MAs/trends were exhausting/exhausted, they eventually exerted a greater influence and we rolled over.
Good explanation ! I wonder
Posted by fredsaid on 16th of Sep 2020 at 03:55 pm
Good explanation ! I wonder if we've made our B bounce high at 3428 and it's bombs away tomorrow or if the QQQs just continue to rotate into other sectors.
Another issue was there was
Posted by chartboy on 16th of Sep 2020 at 04:05 pm
Another issue was there was a pretty big Fibonacci time/price balance there exerting downside trend pressure.
Here is a reference to
Posted by chartboy on 16th of Sep 2020 at 04:22 pm
Here is a reference to the Cha-Cha-Cha from back in 2004....The more things change, the more they stay the same.
https://www.thestreet.com/k/jc/pdf/200403162052.pdf