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The Major Indexes closed higher today. The market pretty much trade up all day and continued up after the Fed raised interest rates.
The Fed raised rates by 75bp (.75%). This is the third rate hike. Usually, after 3 or 4 rate hikes the economy will start moving towards a Recession
All the Major Indexes now have a 1st Day Rally Attempt and we are starting the count looking for a Follow Through Day
The Nasdaq can have a Follow-Through Day first. It could come on Friday at the earliest
The Indexes are still trading below all our key Moving Averages on the Daily and weekly charts so we must be cautious. Even if we do get a Follow-Through Day
The percentage of stocks in a Bullish Upswing is very Low in all the Categories.
13% of the Dow Jones is on an Upswing
13% of the S&P 100 is on an Upswing
27% of the Nasdaq 100 is on an Upswing
20% of all Three Indexes Top Holdings is on an Upswing
The Advance-Decline Diff Invisible Chart Indicators are back in negative territory and telling us to be more in cash and move more to the sidelines
The Weekly Bollinger Band, Stochastic, RSI, and MACD Strategy has now fallen back below the lower band of the Bollinger Band on all the Major Index ETFs (DIA, SPY, QQQ, IWM, and ITOT). We must now wait for a NEW Set-Up Week and Signal Week. The trading Strategy is now resetting.
There will be a lot of Economic reports and events coming out this week we must be very careful and we expect a lot of wide Price Swings
Thursday 6-16-22 we will get Building Permit Numbers and Initial Jobless Claims
Then on Friday, 6-17-22 Fed Chair Powell Speaks at 8:45 am
The BEARS are FIRMLY in control now. The Bear Market is now back in place
Thank You
BTA