“A star lit up like a cigar” Elevation, U2
Markets were initially higher Wednesday as investors awaited the FOMC decision.
The Fed left rates unchanged and the statement contained no material surprises.
As the session progressed however, underlying weakness asserted itself:
The SPX and IWM finished lower, while the NAZ managed only a modest 0.17% gain.
Market internals were poor with the NYSE posting 578 net declines and the NAZ an exceptionally weak 1,352 more declines than advances.
In contrast, we have vertical moves in several glamours.
In my experience when there are a select few scorching high flyers attention/buying is focused on the few like a magnifying glass on a leaf.
These include STX which exploded on earnings.
WDC, SNDK, BE and TER to mention a few.
In contrast, PLTR, CRM, NOW and MSFT are water-logged.
IBM and TXN exploded higher after reporting.
NOW and CLS were down and dirty.
IWM, The Truth Teller, left a Hook Line and Sinker sell setup.
it attempted to rally off a turndown in its 3 Day Chart on Tuesday but reversed taking out the circled 3 Day Chart low.
SPX gapped up to a new 60 day high but closed near session lows. As such, it left a Gilligan sell setup.
As well, the reversal came from a backtest of a Ghost Line.
After the close attention shifted to earnings from MSFT, META and TESLA.
While all three companies reported strong results, the markets response was mixed.
MSFT sank.
TSLA was red initially and reversed.
META down 20 initially saw a big Earnings reversal.
However a weekly META threatens a Head and Shoulders Top.
PLTR one of the strongest names in 2025 is falling out of a Head and Shoulders of its own.
Yesterday 90 days degrees from the October 29 high, the 96th anniversary of the 1929 crash, may ultimately mark the SPX cycle peak, though confirmation can only come in retrospect.
As the above SPX shows it reversed from a backtest of a near 3 month Ghost Line.
Confirmation of a top will come on breakage below the 50 day moving average in tandem with a drop below a 2 month trend channel.
GLD struck a major low at 150.50 in October 2022.
6 cycles of 360 degrees is 589 while the end of January is direct 509.
