A Character Change Day in the Markets?

Hi everyone,

Let’s dive right into today’s (Wednesday’s) action. We’ll cover the general market and then trends that are standing out.

Before we get into it, I will be hosting a Webinar with Ray covering the current market conditions and trading a market cycle tonight at 9pm EST. To access the webinar click the button below

Also, make sure you are subscribed so that you don’t miss any future articles.

---

The General Market

After the fed speeches, the market rallied strongly with the QQQ up over 4.5%. We pushed strongly off the moving averages.

The SPY acted similarly, up over 3% and closing above the 200 sma.

The IWM also rallied above the 200 sma but has more resistance to deal with

The VIX continued its downtrend

The T2108 remains in the 70s

The McClellan Oscillator rallied toward the top of its range

Trends (3/4 Up)

Short-term: Up (Above an increasing 5 sma)

Intermediate-term: Up (Above an increasing 21 EMA)

Mid-term: Up (Above an increasing 50 sma)

Long-term: Down (below a declining 200 SMA)

Overall Thoughts

Today had the look and feel of a follow-through day type event. Lots of flags resolving or rallying to the upside after pulling back and the indexes moving on volume.

What’s important is what happens next. Do we quickly reverse today’s positive action or does it stick and we continue to rally?

There are many nice-looking charts out there, let’s see if the breakouts stick.

15-minute chart:

Let’s see how we end the week.

---

I hope you found this article helpful! Let me know your thoughts in the comments below.

Here is what you can do to help make them possible and support my work.

1. Leave a like on this post below

2. Subscribe to Trading Engineered

3. Share this post on Twitter using the button below

Have a great week!

-Richard