The Fed will release another monetary policy statement this Wednesday. Again, it is low probability event as the Fed Funds rate is pricing in no rate hike. This will lend support to the S&P 500 (SPX) to keep prices afloat. Technically, the SPX has retraced a Fibonacci 78.6% from the low made back on August 24, 2015, and now it’s time to see how the SPX will handle the price exhaustion signal on the SPX short term 4 hour chart. A pair of 13’s should cap the rally in the near term, but as long the daily SPX keeps its TD Sell Setup intact, any corrective price action should keep the overall rally intact, supporting the expected Fed action this Wednesday.
S&P 500 (SPX) SHORT TERM OUTLOOK: BULLISH
Back to neutral if SPX closes below 2052.61.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL
Going to bearish if SPX closes below 2030.77.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: NEUTRAL
Neutral until further notice.
S&P 500 (SPX) LONG TERM OUTLOOK: BEARISH
Switch to neutral if SPX closes above 2063.11 on Friday, October 30, 2015.