SPX In Charge

The bulls are back with some thanks to the Fed. Notice how the price action in the last couple weeks was subtly building a price pattern that tipped the probability of market intention to the upside. Although no one knew what the Fed would do on Tuesday, it seems that the big money and there hundreds of economic analyst were doing some pre-fed buying in anticipation of the move up. After the announcement the volume surged and their bigger orders went in. A day for the record books!

At the time I wrote this, the futures were done a bit, we'll see if we have a consolidation day (sideways to down movement) or if we head higher on some renewed strength. Technically it would seem reasonable to digest the move up and chill at these levels for a while (as you can see we hit a horizontal resistance level), but we'll see what the market has in store.

SPX Daily Chart (Green dot indicates wedge breakout)