It sure looks like the Fed is looking to cut interest rates for the July 31st meeting. But how can it do such a thing if the market is making new highs....that would not make any sense. So Here is my idea. Lets see if I am correct. In the next few days...IMO....I think that the SP500 is going to move up to the neck line of this possible inverse head and shoulders pattern. I think it will reach approximately the 3020 range before swiftly moving down until the Fed cuts rates on July 31st. That's it. I am not sure how deep it wil go but it could be possibly one heck of a TVIX play. This is just an idea for you to ponder.
@SalN It's quite bullish this week ... just took out my short pot with little profit this AM.... it might have another ATH 3040-3050 next week if it still hold 3000 this week... I think it may have a real downtrend after FOMC. Bloody August or September ....
SalN
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@JackyQZ, kind of tough to say. It stopped about 10 points from my target for the neck line. The drop was not convincing when I watched Tvix. So I stayed out and then a big reversal today. Should hit the neck like in the next couple days. Maybe 3025. I will chance it. I have a feeling
JackyQZ
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@SalN, Yes, this month is tough compare with May and June. I kind feel it based on your plan... looks like the pattern of May 1st. Have to be more patient for this big divergence