Enlarge any chart by clicking on it.

Unless otherwise specified, ALWAYS use the 15min chart to enter my recommended plays because
CONFIRMATION is a MUST. In other words, you need to see a 15min candlestick that CLOSES beyond
the entry point, then enter when it moves 10cents after the high/low of that candlestick.

Thursday, December 3, 2015

SPX

Just like yesterday during her speech to the Washington Economic Club, Federal Reserve Chairwoman Janet Yellen today indicated during a hearing of Congress' Joint Economic Committee that the Fed is ready to raise interest rates this month (at the December 15-16 meeting).
As a result, the market sold off just like yesterday following the Chairwoman's comments. But an added factor to the sell-off is likely the fact that the European Central Bank today cut interest rates to negative 0.3% and extended its bond-buying stimulus program for six months (until at least March 2017). Though a very dovish move, investors were disappointed because they didn’t think the ECB went far enough because the ECB did only what was expected. As a result, the Eurozone tumbled on Thurday. Go figure!

The Fed's determination to raise rates this month is actually good news for the market though price action is painting a different picture. I believe the market is setting up a bear trap. The sell-off is as a result of emotional/news traders that want to think raising interest rate is bad for the market and economy. This is a "sell the rumor, buy the news" phenomenon.

SPX-DAILY II


SPX-DAILY I


SPY-15MIN
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