FOMC will cut rates on Monday, emergency meeting.. So stops will be hit to the downside today... to clear out as many longs as possible before rallying back to the opening range.
They don't need to do anything, they just have to create the appearance that they "might do something" at some undetermined date to get the dogs to bark...Notice that the market showed some weakness this week and we had the entire calendar filled with CBer's and their endless horse****.
Which confirms that TA works, indexes are failing to advance with weakening pattern (potential third lower high), on weekly time frame easily seen. They know that can lead to a big sell-off.
Agreed, but that is the dilemma...Over and over again we (as can most market participants) are able to see the cracks in the facade and the beginnings of a turn and then the intervention appears...
This still appears similar to the post 11/3/15 top...There is not enough movement away from the swing high's for shorts to sit comfortably (compare it to how much cushion one has when they buy it near the swing low's...it can be 100 ES pts higher in 2-3 sessions)...One still is rewarded for covering shorts where the late breakout shorts enter and get jammed.