Weekend Report – Fed Decisions

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The week before the Fed decision had a good amount of  action, so let's take a look at the week before the Fed Meeting and see if it gives us any clues about what we might expect next week.  Hint Hint:  Did you see the reaction in the XLF as the markets sold off?

 

XLF on May 31 - This is what I have been watching for weeks. That 50sma was capping the financials and they looked pretty bearish.

XLF Now - As mentioned Friday The XLF & BKX  broke out Thursday and had follow through on Friday.  BANKS have done well leading up to and after a Fed Mtg with a rate hike. Look at what happened before & after the DEC 2016 Rate Hike, which was also very much anticipated. Now we see that type of action again.

Now look at the NASDAQ - at 1:30 Eastern time, I posted this chart in the comments/ chat section and declared that 'so far the sell off was similar to many of the recent ones'.  Maybe the 50sma would be a target down the road?  Did it remain that way?

WHOA! It dropped all the way to the 34sma all in 1 day and then bounced. This is an area that supported price in the past.  At one point it had erased over 2 weeks of gains in 1 afternoon!

 

What am I looking at now?

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June 9th – Setting Up

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This is going to be a very very long report for a Friday, filled with many charts, so let's get right into it...

 

USD - We are likely seeing a swing low form in the USD, so the Dollar should move higher and this could be what we have been waiting for to cap Gold and give us a pullback. I'll cover this more in the weekend report.

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The Same Difference

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The past few reports discussed some of the similarities and differences taking place in the various market sectors right now. We will continue to examine some of these similarities and differences today.

SPX - Mini bull flag type set ups keep pushing these markets higher.  It is only day 13 of this daily cycle and it can continue to move higher.

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