$SPX chart shows the market found support at the bottom of a bullish channel (seen in blue), after yesterday's "sell the news" event (Fed decision). Also see the contracting sideways triangle pattern, with a little panic wave "e", which I predicted yesterday.
It's not often, that we get a clear indication of market direction, heading into an OPEX Friday, but most traders have already covered their short bets, and probably doing their Christmas shopping. This is typically what happens around each holiday, as I'm sure I've said 1000 times.... and to top it off, the cabal is throwing everything they have at this market, so that they can collect on their yearly bonuses. They're panic buying, and the fact that the Elliott Waves are working, proves that these are people driving this market, not machines. Greed rules the day!
Here's the timeline: Build a base today (Thursday), rally into OPEX Friday, and then hold up above the next level of support 2670, on low volume next week. That should be enough time to complete the next wave 4 (consolidation)... and that sets up for a rally into the new year - in wave 5.
And not only did we catch several nice trades intra-day on Wed, but we also saw Silver and Gold, and the miners, rally on the Fed news.
Tweeted Dec 12th:
Silver and Gold waiting for another Fed rate hike? pic.twitter.com/N2WYgCpHIq— Anthony Allyn (@3Xtraders) December 12, 2017
I believe yesterday's pop in Silver and Gold - on Fed news - is not worth chasing, but we'll see. I don't have time to update the chart here, so watch my twitter feed @3Xtraders, and we'll be watching for a more tradable bottom in metals in early 2018. Same goes for NatGas....
While this is all very exciting, we're going to see profit taking in 2018, when the lower tax rates kick in, or once wave 5 completes. That's going to bring with it higher volatility, and better trading in 2018, and that's something to get really excited about - a major trend reversal!
Have a Merry Christmas, and a Happy New Year
AA
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