The US S&P500 broke and closed below a major support/flip zone level. It also coincided with a break below the recent higher low.
Market was expecting a more dovish Federal Reserve...and uncertainty over President Trump's China Tariffs.
I find this highly suspect that the President announced tariffs the day after the rate decision. If you follow my work, you know I believe the Fed's new mandate is to keep assets propped up.
Now they have a reason to cut rates while maintaining confidence AND saving face. This is all a confidence crisis because central banks are out of tools.
This way the central bank can cut rates even more by using this geopolitical issue as an excuse. So I do believe longer term, there is nowhere to go for yield except STOCKS. If the Fed keep cutting rates, you won't be going into real estate until you know the rate cuts are done. Why take out a mortgage when you know rates will go lower...you would wait for the bottom or a when rates begin to go up.
Bonds? For yield...US treasuries are yielding less than 3%... you can make better yield in the stock markets. Pension/retirement funds will also have to make yield...will probably rush into the stock market.
So for a swing trade, I can see another swing lower.
On the 4 hour, you can see we retested and rejected the support now turned resistance zone pictured on the daily chart.
Ideally, want to see a daily candle retest that zone or range, to make a lower high on the daily chart. 2910 needs to break to confirm a lower high.
First target zone lower will be the 2860 zone.
Market was expecting a more dovish Federal Reserve...and uncertainty over President Trump's China Tariffs.
I find this highly suspect that the President announced tariffs the day after the rate decision. If you follow my work, you know I believe the Fed's new mandate is to keep assets propped up.
Now they have a reason to cut rates while maintaining confidence AND saving face. This is all a confidence crisis because central banks are out of tools.
This way the central bank can cut rates even more by using this geopolitical issue as an excuse. So I do believe longer term, there is nowhere to go for yield except STOCKS. If the Fed keep cutting rates, you won't be going into real estate until you know the rate cuts are done. Why take out a mortgage when you know rates will go lower...you would wait for the bottom or a when rates begin to go up.
Bonds? For yield...US treasuries are yielding less than 3%... you can make better yield in the stock markets. Pension/retirement funds will also have to make yield...will probably rush into the stock market.
So for a swing trade, I can see another swing lower.
On the 4 hour, you can see we retested and rejected the support now turned resistance zone pictured on the daily chart.
Ideally, want to see a daily candle retest that zone or range, to make a lower high on the daily chart. 2910 needs to break to confirm a lower high.
First target zone lower will be the 2860 zone.
