Tomorrow and Thursday are Near Impulse forecast
dates for SPY and most of the market indexes. These two dates
originate from opposite turning points, one from a previous low and one from
a previous high. Usually this indicates a very volatile two days with
mid-day turns. We are also at price levels which usually terminate the
shorter term correction in a longer term bear move. On the positive side I
did not get sell signals on today's activity for the indexes or the 200
stocks I follow but tomorrow may yield a sell signal after the Fed
announcement.
This is an important two days in the future
development of the market. If we get through this without a major bearish
impulse and continue up to the bullish reversal areas, it bodes well for the
next few weeks. If, however, the reversal occurs , we could see another
major leg down. Short term traders be careful and position traders should
protect profits with stops.
Regards,
Jim White