There was a chance today, 11/2/16 for the SPX and other main US stock indices to rally in to the FOMC announcement.
Early in the day there was a failed attempt at a move above the late day bounce made on 11/1/16. After the FOMC the SPX made a new decline low and register significant bullish divergences on the 30 min RSI and MACD. Strong resistance is now at 2117.60. If the SPX can rally on 11/3/16 be alert for a possible top anywhere between SPX 2113.10 and 2117.60.
Also watch the NDX vs. the SPX. Intraday the NDX has been underperforming the SPX. If intraday the NDX fails to confirm a SPX peak, it could be another signal of a developing top.
If the SPX fails to move above 2113.10 and goes below 2094.00 it could be a very bearish signal.
Mark
Early in the day there was a failed attempt at a move above the late day bounce made on 11/1/16. After the FOMC the SPX made a new decline low and register significant bullish divergences on the 30 min RSI and MACD. Strong resistance is now at 2117.60. If the SPX can rally on 11/3/16 be alert for a possible top anywhere between SPX 2113.10 and 2117.60.
Also watch the NDX vs. the SPX. Intraday the NDX has been underperforming the SPX. If intraday the NDX fails to confirm a SPX peak, it could be another signal of a developing top.
If the SPX fails to move above 2113.10 and goes below 2094.00 it could be a very bearish signal.
Mark