Today is laughable into the FOMC announcment. $SPY is down at intraday support on the Erlanger Value Lines at $215.95. Meanwhile, $IWM is near pivot which is $120.56. $DIA is trading around pivot which is $184.44. So a pivot as opposed to a support day, so far.
The NYSE A/D line is at -633. The NASDAQ A/D line is at -47. That does not support a drop on the S&P 500 of -0.33%. So when you add all this up, it sets up for a buy on either IWM or QQQ. Why not SPY?
SPY has been struggling with oil weak here. Oil needs to firm up for $SPY to take off.
The takeaway is I am more in the camp of a rally than a puke at 2:00 p.m. EDT. In an hour we will know if this thought process was correct.
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