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Wednesday, December 12, 2012

Daily update 12/12

I guess today indicates that $45 billion just isn't what it used to be.  The last FED announcement of QE in Sept. caused quite a rally to end that day and continued the next day.  That was the high for the year so far though.  Today's big announcement saw the rally wiped out in a couple of hours.  That left us with a bearish daily SPX candle.  Here is the chart.

Resistance held two days in a row including a fresh QE announcement from the FED.  We now have a gravestone doji candle at that resistance.  Will there be follow through selling?  Lets look at the 195 minute SPY chart.

Spy had the biggest red volume bar since the low back in Nov.  Is that a hint that a reversal is coming?  Lets zoom in to the 60 minute chart.

SPY had a big green volume bar on the FED announcement.  Price gave up the rally over the next two bars.
Volume was somewhat elevated all the rest of the day.  Here is the 30 minute chart.

There was an increase in SPY volume on every down bar after 2:00 into the close.  Maybe it was Bernanke at the press conference saying something people didn't care for. 

We have a reversal type candle coming at a confluence of resistance mentioned in last night's daily update.  Will that cause a bit of a pullback  now?  

What will people focus on now?  The FED meeting is out of the way.  The only thing left between now and year end would seem to be economic data and the fiscal cliff talk out of Washington.  The market has chosen to ignore any we are not close to a deal talk.  Will that continue now that the FED meeting is over?  Stay tuned.  Things may still get interesting the rest of the year.

Chart practice has been updated with WFM the chart for today.


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