“Seesaw swingin’ with the boys in the school” Walk This Way, Aerosmith
A 10 min SPX for Fed Day shows there was an “extra Cha” at 2:50 (ET) to 3:30.
The Roadmap was looking for the high of the day to be around 3:15.
Below is a 10 min SPX for Wednesday.
Here is what the Roadmap projected for Wednesday.
Fed Chair Powell is halting rate cuts once again.
You wouldn’t have assumed this based on how the markets reacted.
The markets pushed trying to pretend that what Powell was saying was bullish.
There was nothing bullish about what Powell said.
Powell made very clear that inflation is the culprit brought about by tariffs.
They did cut rates, that’s what the market wanted, but overnight A Big Cha is opening up a can of whoop ass on The Hulk.
In sum as I write this Wednesday night, the Q’s are trading below where they were on the Fed announcement
The market has been recovering since November 21 most likely based on the expectation of a rate cut. But Powell made it very clear: ONE RATE CUT in 2026.
But it was definitely not a bullish FOMC press conference.
It solidified the uncertainty of the market and that the Federal Reserve has going forward: a rising inflation rate and a weaker labor market.
The Q’s pushed into Phil D Gap for the 3rd time in4 days leaving an outside up day.
The Q’s turned their 3 Day Chart down by one cent Wednessday morning. Trade below Wednesday’s 3 Day Chart circled low now at 620.99 that follows through is a strong sell signal indicative of a secondary top having been installed.
Breakage below 612 where there is a 20/50 Bowtie could perpetuate a Flash Crash.
Glamors exploded as if to telegraph a runaway sleigh ride into year end.
Names include STX, WDC, CIEN, SHOP and TWLO to mention a few.
But it’s a “have and have not” market.
Former leaders failed to get any real traction post Fed cut.
Names include IREN, BE, AMD, NVDA, CRDO, COHR, and HOOD to mention a few.
This is during a bull market that these speculative assets are faltering. What do they do in a bear market?
The SPX left an LROD to the upside, with the third highest close in history. Only Oct 28 and Oct 29 saw higher closes.
Breakage back below Wednesday’s low will trigger a Keyser Soze Reversal of a Reversal.
If that occurs in this time fame—the Gann Panic Window— in addition to this week squaring the 692 (6920) all time high, caution is warranted.
Taken together the two could produce the potential for a Flash Crash flagged Monday.
The market has been meandering for 7 days into Fed Day in a good imitation of Weekend At Bernie’s.
But the props may have gotten kicked out from under the bulls overnight.