There she goes
There she goes again
Racing through' my brain
And I just can't contain
This feelin' that remains
The Velvet Underground, There She Goes Again, 1967
Songwriter: Lou Reed
–
Well, the Fed speaks and the market reacts providing traders with the brief opportunity to sell in the vicinity of the recent all time high, followed by a rapid descent which triggered a 'cover' signal at 2909.
At the very least we should now expect some kind of stabilisation phase as the market looks to find support, with the possibility of further selling.
Yesterday's action suggests to me that the current T structures may be complete, and that a corrective phase may now be necessary.
The rapid drop in the T volume oscillator since the high on Friday morning is flashing a warning as one would normally expect to see some follow through from a thrust in the oscillator, and so, for now, last week looks like distribution at the high.
Watch the declining angles from the high, rising support lines and averages, and the oscillators for signs of stabilisation as we wait for the next signal.
Be prepared for whatever is coming next, and trade with confidence:
To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.
Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.