Fed Blinks As Worst President Ever Gets Rate Cut

Trump defenders - or Trump himself - will not survive history, but markets gave their opinion, and today was not good for bulls or Trump. What's interesting, is that it's not unfair to say the majority of market influencers lean right, but the lack of a favorable reaction to the rate cut would suggest disquiet, and run contrary to the bullishness markets have demonstrated for most of the summer. But we also have to accept that markets are apolitical, and you can't judge your investment decisions through the lense of being left or right.

Small Caps had the worst of today's action. While the headlines will show a net gain, they won't show the nasty "gravestone" doji on higher volume. We have a 'sell' signal in the MACD that runs contrary to the 'buy' in On-Balance-Volume. If we see a gain into today's gravestone spike we will have a good chance of a negation in its bearish implication, but a loss tomorrow will spell trouble.

The S&P didn't suffer too much. No confirmed distribution and today's losses weren't as bearish as the gains in the Russell 2000. Take a wait-and-see approach. Technicals are net bullish.

The Nasdaq is in a similar situation to the S&P. We wait the next move, but it should be higher given what's come before.

Let's see how markets finish by Friday's close. Weekly charts are positive and if they remain so by the end of this week it will be negate today's bearishness on the daily timeframe. Otherwise, we will have to consider the damage.

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Investments are held in a pension fund on a buy-and-hold strategy.

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