It’s Fed QE MBS settlement week. You can’t keep a market down for long when those billions and billions get pumped into dealer accounts.
But this isn’t your father’s MBS setttlement week. And it’s also Fed resubstantiation time. Lots of crosswinds.
The hourly chart is a noisy mess. Lots of action. No movement. It’s the mother of all meat grinders, as trading ranges tend to be. The idea of orderly “channelingstocks.com” markets is long dead.
So we had a double bottom overnight. The decline made a higher low. An uptrend from November 30 remains intact. How far will this rally get? There are no projections yet, and all the upside cycle projections yesterday were pie in the sky. The potential resistance levels to watch for signs of reversal this morning are around 3665, 3675, and 3681.
A reversal from those levels would just signal more churning until the broader range is broken. If cleared, then the next target would be 3700 again.
For the big picture- Try Try Again, Extended Market Hits Long Term Resistance Trend.