Suspicious Stock Rally

Today 06/15/22 after the FOMC announcement US stocks rallied then had a deep retracement of the move up from the bottom made on 06/14/22.

The S&P 500 (SPX) 5 – minute chart courtesy of Trading View illustrates the action.

At the 06/15/22 low the SPX retraced about 80% of the rally from 06/14/22. Just before 3:00 PM -ET another rally pushed the SPX up to the high of the day.  This later rally also had about an 80% retracement.

Both the RSI and MACD had bearish divergences at the high of the day. 

The overall Elliott pattern from the 06/14/22 bottom looks like a corrective pattern of the primary down trend.

The bulls difficulty holding  their gains along with bearish divergences  hint at lower prices on 06/16/22. If the SPX breaks below the 06/14/22 bottom it could open the door for a drop down to the SPX 3500 area.