A quick update on the SPX – in particular as the FOMC news did not produce a quick spike:
[amprotect=nonmember] Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
If you were long since last Friday now is a good time to take profits and to wait for a little drop. All in all it seems to me that we may be pushing toward 1320 before we see more meaningful downside. But I would not be surprised if we first saw a little shake out. And if we close on a doji today then the odds for a quick drop would increase.
So my take is this – best to take profits now and wait for a little drop lower to go long again. If you are a Zero sub also take a look at the Zero Lite – which seems to be supporting my view that we are due for a quick reversal. Always remember – in thin summer tape like this you can only rely on very clear odds – and right now the whole thing looks a bit iffy to me.