Correction is complete and potential for the rally
Yesterday's trade started on a weaker note. Market participants again dealt with concerns about the Fed overtightening and forcing a recession for the U.S. economy. These concerns were stoked by comments from Fed officials ahead of the open. Specifically, St. Louis Fed President Bullard (2022 FOMC voter) acknowledged that the fed funds rate is not yet at a sufficiently restrictive level and then showed in a Taylor Rule exercise that the Fed may need to go to 5-7% in the battle to get inflation under control.
And for this past few trading days, markets has trended mostly sideways with declining volume at elevated prices. And makets has completed its "correction" mostly in pre-market and after hour trading session.
Chart 1.1
Chart 1.1 shows how I predicted
SPX
will goes in next couple days.
For QQQ and SPX, I would like to see markets holds 8&21 emas and break above its resistance next week.
And for this past few trading days, markets has trended mostly sideways with declining volume at elevated prices. And makets has completed its "correction" mostly in pre-market and after hour trading session.
Chart 1.1 shows how I predicted
SPX
will goes in next couple days. For QQQ and SPX, I would like to see markets holds 8&21 emas and break above its resistance next week.