Although the sell off after the Fed Minutes was a shock to me, and looks initially like it is very bearish for market, I think there is a glimmer of the bull present with the right actions today.
First yesterday was an Outside Day Down, which in a bull market has a potential buy signal if SPY gets to Buy = Open + 20% Range = Open + 0.57 = 235.52, which is a ways up there at the open. The outside day down normally gets oversold and can generate a rally to follow in the next two days if it is triggered.
Secondly, this sell off may in fact be wave 2 of a complete 1 off of the bottom, which is quite possible given the look as long as 234.5 holds today or any day.
The $NYMO ended the day at zero, so this is a potential trend change if we go up today.
So far in the first 30 minutes the SPY and several stronger stocks like WDC, SODA, & EBAY ( and now even the weaker ondes) have overcome their 80 min MOVs. If they can rally sufficiently above them and back kiss that MOV, we may be off to a decent rally to attempt the 235.5 area.
Most of these stocks have a positive divergence in place on the 1 min time frame; while a couple are in place on 5 min scale. Whether that will hold or not is another question.
This AM should tell the story.
Edited by thoughtpwr, 06 April 2017 - 09:08 AM.