Wicked Wednesday Wrap Up

I won’t be posting a video today as the signal turned into a complete flatline all day. That in itself may be a statement in that I am seeing very little participation down here. We are at dead center of a volume accumulation peak (per my E-Mini volume profile chart). Nevertheless the day turned into a weenie roast even during the FOMC update (or perhaps despite of it). What however grabs my attention this evening is our 1-hour Zero (i.e. the one on the left):

As the arrows indicate, the 60-min signal is now developing a bullish divergence and that’s another reason to not get too excited down here, I can literally smell the sulfur. If we see a dip back below tomorrow then we may see more red candles but if it goes positive then the writing is on the chart.

Bottom Line: Despite my P&F price objective of 1390 on the SPX I’m smelling a bounce here. Even if we slide lower into target I have little interest in taking on any downside risk for what may turn out to be another 10 or 15 handles. The risk to benefit ratio is not in our favor at this point.

See you tomorrow.

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Cheers,