The Wall Street Journal reported over the weekend that the Federal Reserve may be getting ready to scale back its $85 billion-a-month bond-buying program in careful steps, although the timing of when that will start is still being debated.
I myself have serious doubts about that, as a trader I have seen this time and time again, rumors rumors and more rumors, and then the fed come along with a new name for some new buying program and up we go. Now I do not have a crystal ball, but ....I would rather forget the news just for now, and focus on the charts.
It seems there is an a symmetrical triangle on the S&P 500 right now, and it has broken.
If you have a look today we actually reached anther fresh new high, and then flattened off.
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| symmetrical triangle |
If we step back a bit and have a look at the S&P chart on the daily chart it is fairly obvious for now we are still in a nice skinny upwards channel. The longer these channels hold, the more bullish they are. For now we are at the 1631 and holding. I think we are in a steady as she goes approach.
We are still cautious, but there still seems to be alot of bulls around sitting on the bus and enjoying the ride.
We are still cautious, but there still seems to be alot of bulls around sitting on the bus and enjoying the ride.
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| spx chart |
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