Fed Pattern

Like I predicted in my previous post, SPX spiked after the FED announcement and rinsed 04/17/09 high then reversed to the downside. There will be follow through tomorrow.

Also since SPY was unable to close below the trend line at 86.9 (which was tested and held near the close), SPY will gap below 86.9 tomorrow and gap should not get filled.


As stated before, this was the best ST scenario for the bears as it fits in bearish intermediate term picture quite well.