Tonights update will be brief as tomorrow starts the FOMC meeting. Today's advance caught me off guard. In my weekly publication Heard On The Street , I anticipated a further decline today. That's not what happened. Instead the market rallied to a .786 retracement of the decline that began from 1295.
If the initial decline is a top, 1295 is the line in the sand that can't be voliated to maintain a bearish view. Based upon the strong close, price may rally in the ON session or earily on tomorrow. If w.(ii) is still unfolding, a common relationship exists where w.c = .618 w.a at 1291.25.
Bottom Line: Price must turn tail or the S&P will reach a new recovery high and confirm the Dow's advance. The implications of such would mean that w.(2) was still unfolding. If you have been reading all along, that's why we need confirmation ! Let's see what happens.
Best of Trading
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