After the 09/18/24 U.S – FOMC announcement U.S stocks rallied then reversed and the three main U.S stock indices ended the session near the lows of the day. It looked like a classic example of “buy the rumor sell the news”.
On 09/19/24 U.S. stock bulls other plans.
The Dow Jones Industrial Average (DJI) chart courtesy of Trading View illustrates the action.
The DJI continued its relentless rally and made a new all-time high.
The DJI from its 04/18/24 bottom appears to be forming an Elliott wave – Ending Diagonal Triangle. This is a termination pattern of the larger trend.
Daily RSI and MACD have bearish divergences.
Sometimes markets can have turns on or near New/Full Moons plus or minus two trading days. If this phenomenon is in effect, the DJI if it has not already peaked, could top on 09/20/24.
The recent move up hit stop loss levels on Russell 2000 short position that was initiated on the open of the main trading session 9/4/24. The stop loss levels were at Russell 2000 – 2,225.00 and 2,250.00. The total loss was 4.32%.
Also, interest rates are rising. What!? That’s crazy talk, the FOMC just cut short-term rates by 50 – basis points. Longer term rates that the FOMC cannot control are rising.
This websites next blog will examine this phenomenon.
Four Dimension Trading 