Wednesday July 31 – Post-Fed Markets
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SPX: The Fed did not cut interest rates, and the markets sold off with his speech and then started to bounce back. This gave us a Doji for The SPX and that is often called a candle of indecision. We should be able to see on Thursday which follow through direction takes place, but on day 11 these markets should have more upside.
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THE NASDAQ has a Doji too, so it almost looks uneventful with the Fed reaction, but let me show you how this really played out in real time. It always amazes me what the intraday price action does on a Fed Day…
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I want to show you what the QQQ looked like during the Fed Decision, speech, and post-speech price action.
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The QQQ popped and dropped and bounced back (doji) at 2 P.M. and then started to rally before the Fed Speech. As Chairman Powell spoke, however, we saw a land slide sell off…
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That selling continued even lower and then as he finished the Q & A part of his speech, the QQQ tried to bounce back. Could it bounce back?
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The QQQ did bounce into the close, but look what it did after hrs! The shaded area is after hrs trading and the QQQ surged to new day highs and more! What is happening this morning?…
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The QQQ surged in after hrs and as of this morning it is also still holding the gains, so it looks like the markets want to gap up and move higher on our POST-FED THURSDAY.
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3 days ago I pointed out the RKLB chart as possibly forming a bullish wedge to support. This could be a buy at the green 20 ema line.
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And RKLB did reverse at that support. It also dipped a little with the Fed Mtg and then recovered.
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RKLB, seen here, also dipped a little with the Fed Mtg and then recovered.
At the close.
THE USD surged with that Fed Decision. This is day 22 and I would expect a dip soon, possibly even enough to back test the breakout.
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So I wanted to show the odd price action as I write this report Thursday a.m.
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I am seeing GOLD up $30, yet SILVER is down $0.27, while THE USD is up slightly. So when we review the Gold chart, it is now up $30 from the close…
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GOLD dropped, but it has not taken out the lows yet (the dcl), so it is still just considered a choppy consolidation. If it does take out that dcl, it then becomes a ‘failed’ daily cycle and we expect to start our drop into a lower low and an ICL eventually. At day 22 today, we are getting closer to a dcl, but they have ranged in timing (from a day 25dcl to a day 31 dcl).
YESTRDAY I DISCUSSED A POSSIBLE a-b-c down for SILVER. I said…
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It could be that the Fed decision drops it this week quickly to the red line of support or 50sma and it bottoms with a dcl next week. Stay tuned. An a-b-c down like this is easy to picture. It would still be a mild dcl.
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Well, the Fed-day did drop Silver lower and this was day 25 for Silver. It is a little lower in pre-market, but the 50sma is still below price. It also isn’t near the last dcl yet, so it can continue to chop around. Guess what? The last 2 daily cycles formed dcl’s around day 26, so we’ll see if that happens at the 50sma.
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GDX is still following Gold, but we are seeing some earnings reports helping Miners now. NEM really popped with earnings and…
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YESTERDAY I USED THIS CHART AND MENTIONED THAT KGC HAD EARNINGS AFTER THE BELL. IT IS UP 5% AS OF 6 A.M. ET. They had an estimate for earnings at $0.24 and then they announced $0.44 actual.
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KGC still looks great, but they have earnings today. We’ll have to see how these weather the storms. In a bull market, they may surprise to the upside due to the strong price of Gold.
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So another Wednesday Fed decision has come and gone. Another crazy volatile Wednesday has come and gone. Now we’ll see what happens with Thursday, but it does look like the Bulls regained control in after hrs trading and it is holding up so far in pre-market. Enjoy your Thursday trading!
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~ALEX
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BITCOIN sold off yesterday, and it continues its consolidation and sideways chop. Most crypto stocks sold off yesterday…
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WULF – Most crypto stocks sold off and are doing a consolidation of their own. Wulf is riding the 200sma so far.
