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As of yesterday's price action, SPY was oversold and showing bullish divergence on the hourly price chart. Today is the FOMC announcement and so there is the possibility of a news-driven sharp move here. Given the technical set-up, it seems likely for a rebound attempt. A major downer would be unexpected here, but could be of longer term significance.
There has not been a bottom reversal signal in my SPY trading system currently, and there has been no bullish divergence to develop in the underlying real money sentiment analysis. So in the past that has typically meant that we see at least a slightly lower low before a reversal occurs. If that occurs followed by a reversal bar, we likely will see a signal occur and it so, I will note it with some detail on the significance and how to trade it, if at all.
Additionally, the VIX/VXV ratio has closed above 1.00 for 2 out of the last 3 days before today, and as I have noted repeatedly on this blog in the past, that often occurs just before an important low occurs. So really, it means that you take any objective long trading signals generated here. The signals dependent upon your plan and trading method.
Further understand that we are entering into a positive seasonality in the end of year time frame, which would just again be another confirmation that long signals should be acted on. And a stop is always used in case of a major surprise or trend shift.