Can the Fed Rally Continue?
[Watch today’s video update by clicking on the picture to find out how to trade the coming volatility in US markets. This is a very unique situation and traders should be preparing themselves for the opportunities to come.]
After the US Fed made a sharp about-face last week in response to the market volatility at the end of last year, we find ourselves in a situation where the technical picture is still very bearish but there has been a potentially large shift in the fundamental situation.
In today’s market update I point out that regardless of whether or not the Fed’s change of heart sparks another leg up in the bull market, there will likely be stiff resistance encountered overhead as a result of the huge quarterly sell pivot that we saw at the end of last year.
I see opportunity to create a cheap straddle, as I discussed last week, the higher this market goes in the short-term. I point out where all of the key levels are above and below the market and show you why so many technical indicators are pointing to a sharp sell-off occurring once this current upward momentum runs out of steam.
Editor, Alpha Wave Trader