SP500: The market has priced in a hike
|SUPPORT: 2230** 2225 2220 2216/14 2208 2205/04 2197 2193 2185
RESISTANCE: 2241 2252 2257 2263 2274 2285
So we broke higher...yet again and this time it seemed like with conviction....our daily pivot is at 2230 and this will be the key to days trading range...If we can stay above here then there is a good chance we will trade higher...we obviously need to break 2241 and if we can there is no reason why we cannot trade higher with the market then reaching 2257 to 2263 which is the R2 and also a Fib extension....we would look for this to hold given the rally of this week from 2208...and also we have the reversal Thursday syndrome to contend with...Now I am not going to say anymore that the market is going lower.. Yesterday proved that the market was short and therefore it had to cover which fueled this rally later in the afternoon.. But the market is above some significant support are...and you cannot stand in front of the speeding train...however if we fail to hold over 2230 it would send a signal that the market is due for a retreat and we should be able to push lower to the previous 2214 highs which will now act as support...can we crash...well we are overbought and the market is gearing up for FOMC which is helping to keep prices buoyant...can it last...well next weds will reveal all...The market has priced in a hike...but can it sustain the move on a 0.25 basis point hike...I think not.. but sentient would then also shift that this first hike would be the first of many....or at least that the rates will not be cut...so there is all this confusion going on....Probably the best thing is to wait and see if the market stays above 2230 and can settle....if we can then there is no reason we cannot go higher until the charts and technical indicators show we have reached a top.
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