Market Update, No Surprises Here

As per yesterday's post , we didn't see the downward price pressure from the negative divergence. The lack of downward price pressure meant the lateral trend was most likely going to make a move to establish a new local high since we were so close, the entire explanation is in the linked post above. In any case, what we have today is exactly that.

Wall Street always seems to set up cycles like a world champion chess player, thinking weeks or more ahead. IF there were concern about the upcoming FOMC meeting, in the past you'd expect the market to move down to discount that concern, not anymore. Now it's more likely that the market will move up as it presents a way for Wall Street to short strength on concerns of an upcoming event. The coordination is uncanny, especially given the monkey wrench thrown in by the S&P ratings over a week ago that threw this cycle off track by several days, but it was made up in a day.

So it looks very much like we'll see the move I talked about yesterday, I have a feeling I know what the outcome will be, but it will be important to watch the market above the local highs, which it's above now.