I SPY a Weak Market
Hey everybody, this is John. Welcome to the free video. A little crazy day today. We had -- so yesterday we had the nice reversal. S&Ps reversed. I actually thought we'd get a rally into the FOMC meeting and then maybe sell off. But what happened is last night the S&Ps rallied up 10 points on news that Turkey was raising the rates a lot. Then they sold off like 25 points from there into the open. So it was kind of a brutal reversal.
Then when the FOMC meeting came out, it did not save the day. In fact, you had gold go higher, bonds go higher, the Yen go higher, after the FOMC meeting. That's the first time that's happened like in 13 meetings. So my concern is that this is for real. Like we've seen...obviously we've seen sell offs that just have immediately turned into you know, rallies. But the correlated assets are confirming that we are now at the start of the downtrend. So for me to really be convinced of that I would like to see us break the 176.45 level. OK.
So at this point, you want to be careful on the long side. Obviously, this market has been very, very strong. It's hard to say that, wow, OK. This is the top right here...but the fact of the matter is you can see here we're right at that 21 EMA. If we take out 1764.5 it also means that we're piercing the 21 and that opens up actually a pretty steep decline. OK. Be careful on the long side. If we do rally I'm willing to start -- I'm willing to initiate some shorts on any rally up to the 200 EMA. But at this point I mean, I like a couple of longs that are strong like you know, that are strong like Tesla and Netflix, etc. But the market pressure at this point is to the downside until it proves itself otherwise. OK. You guys have a good night and we'll see you at the next update.