1/8/2014

Well, tonight's post might be very similar to the previous one. The triangle on the hourly chart held pretty much to the line. Interesting the daily chart now has some semblance of a channel from recent price action. The upper band actually makes sense for tomorrow if there's a breakout - about 1880 - but if that happens I think we'll be overbought again.

Once again, tomorrow will test 1840, although the downside tolerance will be much lower if that is going to happen.

There were FOMC minutes today with some interesting outcomes. Unemployment target now sits at 6.0% for a policy change. $75 billion in open market purchases per month will continue to be made. I think the sideways trading that occurred today is a great visual representation for the way this information was priced in. It was largely expected, market participants appeared indifferent. This only became slightly more volatile.

Also, there may not be a post tomorrow, as I will be out of town.

S&P 500 Hourly Chart

S&P 500 Daily Chart