Are You Ready for Yellen’s Big Announcement?
This morning’s competently orchestrated short-squeeze stopped a single tick from the 2146.44 ‘secondary’ Hidden Pivot target disseminated here last night. Ordinarily this would be reason for bears to take mild encouragement, especially since the reaction move generated a bearish impulse leg on the lesser charts. However, because the stock market was simply idling ahead of whatever drivel Yellen serves up tomorrow afternoon, there is little of tradable value for us to infer. Of course, we all know what she will say: that although tightening is no longer immediately in prospect, the Fed will continue to weigh its options.
This might be expected to draw a yawn from thinking investors, assuming there are any left. However, in the judgmentally impaired, greed-saturated, quasi-deranged, thieving world of Wall Street, and in equally benighted newsrooms across the land, it will be justification for the stock market to launch into hysterics — ostensibly because the news will differ somewhat from Fed drivel promoted heavy-handedly in recent weeks to suggest that rates ‘could be’ ‘tightened’ ‘as early as September’. I won’t presume to tell you how to trade whatever wacky price action results when the alleged news hits the tape at 2:00 p.m. However, I can all but guarantee that any upswing will be contained by either the 2154.25 target furnished here yesterday, or by the 2162.25 target of a somewhat larger pattern. Both Hidden Pivot levels are shown in the chart. Visit our 24/7 chat room and share timely ideas and real-time results with great traders from around the world. Click on the link for a free trial subscription.