FOMC party aftermath

The markets $DJIA(.DJI)$ , $NASDAQ(.IXIC)$ and $S&P 500(.SPX)$ retreated on Wednesday.The FOMC did not surprise and instituted a 50 basis point hike as expected. The market retreated after the Fed's announcement. And as alluded in the previous article, the previous day's price action look very much like a bull trap.The bulls did not carry the gap and the necessary support was lacking. The bears were waiting and now it looks like they are taking over vontrol. 

Technically, the B wave of Wave 2 looks to have complete after nicely touching the 4100 levels. The C wave is possibly in progress now and we might see market weakness into next week. I am expecting the market to gyrate to the 3800 levels into the end of next week. That might mark the end of the C wave and the bottom of wave 2.

At the moment, I believe the upcoming retreat will be the epitome of wave 2. However, if levels do not hold, the goalposts will have to shift and the counts recalculated accordingly. I am cautiously optimistic that levels will hold and wave 3 will start shortly after.

As such, I am setting up buying points at the 3800 levels to utilise the cash raised. 

Thanks for reading my commentary.

Stay safe! 😊