BP map and Pattern Recognition map (with notes below)
Posted: September 23rd, 2009 |
Author: Mike Korell |
Filed under: One-Day Market Map | »
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Thanks once again, Mike and ChartsEdge!
Welcome to another Fed day, folks. There are plenty who just don't trade on Fed days, or who step aside by 2:15 pm in order to avoid the usual wild volatility that ensues after the announcement even when it's exactly in line with expectations. Stepping aside is a no harm, no foul approach that can help one keep one's nerves (and lunch!) intact. Most often the next day following, is a much better trading day.
What about ChartsEdge's maps, how do they perform on Fed days? Well, Mike developed them a little over a year ago, so not a huge database yet. Anecdotally, it's my experience they've worked rather well, usually giving a good forecast which I do admit I find remarkable. Still, remember that when the volatility shows up at 2:15, it's typically fast and sharp so approach it carefully in any case!
The Elliott Wave implication seems, to me anyway, a pullback or consolidation perhaps as a tiny second wave, leading to a continuation (tiny third wave?) for Tony Caldaro's minute wave v up. For swing traders, it's still evident the indices are struggling with resistance levels both right here and slightly above. But so long as the SPX remains above 1057, they're still on track for trying higher. You can see how Tony's marking the minute-level waves within the intermediate and major waves, in his public charts linked at his OEW "Elliott Wave Lives On" site in the list at right. So as always - happy market navigating all!
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