The market on Wednesday took Federal Reserve Chairman Jerome Powell’s comment about slowing rate hikes to 50 basis points at the December meeting as the path to easier monetary conditions and reacted strongly bullish.
The Volatility Index (VIX) and the ProShares Ultra VIX Short Term Futures ETF (UVXY) are in areas that I would expect them to turn, but they haven’t. I will also take the market as bullish until we see that change again.
I also typically see price test the daily 50-day simple moving average (SMA) to confirm an uptrend, which the SPDR S&P 500 ETF Trust (SPY) has not done. So I am left having to lean bullish, but with a future test of the daily 50-day D50 SMA as the downside risk.
Let’s dive into this:
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