The low volume fake out today at SPDR’s (SPY) $327.20-328.40 ahead of Fed Decision and then $328.63 after came on less 23.5 million shares! The remainder of thale day as I predicted would come see the $SPY plummet into the close on heavy VOLUME of nearly 30 million in the Final 2 hours to go as low as $326.40 before closing at $326.61 just off the lows of the day.
So..what to expect tomorrow and the rest of the week? The inability of the S&P 500 ($SPX) to atteact buyers over 3290 today following the Fed and the indexes close under last Fridays 3281.35 close as well as (SPY) sub last Friday’s $327.32 low closing today at $326.60 sets up a drop to retest and fail the weekly low at 322.66 seen this oast Monday that will almost surley result in the (SPY) closing the week on Friday Jan 31st 2020 below its key 50 DMA at $319.45. As Ive said al along since Tuesday Jan 22nd the February 21 OEX would be used to MAX OUT the Feb 21 OEX Puts as a 10.92% CORRECTION was gunna happen! Thus far my prediction has been dead on as we are now 2% into an 11% CORRECTION that will see the (SPY) and the S&P 500 ($SPX) close the week under its key 50 DMAs.
More to come….