Monday’s blues rolled over into Tuesday’s open, but the bulls took the lower open as an opportunity to buy. Then they got help from some news or speculation that new tariffs would be delayed.
Regardless, Monday’s Real Motion bearish short-term divergence created the type of day we expect with this condition, which is one where the market has trouble rallying. The good news, however, is that despite a lower open, the market held firm.
The other reason the market waffled yesterday: to bide its time until the FOMC’s press conference later today.
Today’s Fed announcement after its FOMC meeting is not expected to deliver any news that should move the markets significantly. But sometimes no news is good news.
We shall see.
If the market begins to trend after the announcement I wouldn’t fight that trend. Up or down.
After two days of rest, the market has all it needs to move higher, but since its short-term momentum may still be negative, a move lower should be respected but not feared.
Unless there is a surprise in the news, the main trend is up, so I’m just waiting for the end of this “rest” period.
S&P 500 (SPY) 312.80 or the 10 DMA support. 315.48 the ATH.
Russell 2000 (IWM) 161.10 support 162 pivotal and 163.41 new 2019 high.
Dow (DIA) 277.86 support. 281.91 ATH
NASDAQ (QQQ) 203.15 support 206.05 ATH.
SPDR® S&P Regional Banking ETF (NYSE:KRE) 56.00 pivotal 57.52 major resistance
VanEck Vectors Semiconductor ETF (NYSE:SMH) 132.40 or the 10 DMA support 135.26 ATH
iShares Transportation Average ETF (NYSE:IYT) 188.25 key support and if fails, will impact everything. Resistance at 193.55 then 195.
iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) 116.30 key support 122.97 the 2018 high
SPDR® S&P Retail ETF (NYSE:XRT) 44.15 support 45.41 has to clear next