Yesterday’s megaphone price pattern after the Fed announcement had plenty of action but today’s gap above S&P 500 (SPX) above 1700 gives the green light to the upside. My thoughts going forward are to follow the 4 hour TD Sell Setup. If it continues through the 9 count TD Sell Setup path, the daily chart will record a few 13’s and the weekly chart will likely record a 13 count TD Sell Countdown this week. The confluence is now clear. I am not emphasizing price targets but SPX 1711 is close at hand. With the Keltner/Bollinger band (K/B) volatility squeeze on the 4 hour pointing upwards, I am inclined to think SPX 1711 can be taken out. K/B’s can fail so watching how SPX works with the counts will be helpful.
Intraday price action is bullish but it actually very sloppy. Tick readings throughout the day are not elevated to suggest not everyone is buying this rally. Need to see a good 600 plus tick. Managing the long side. SPX must not see anything under 1700 today. (updated intraday)