About 30 minutes after the FOMC announcement, and we see that the initial knee-jerk reaction was a swoon from 1190 in the emini S&P 500 to a new intraday and three-day low at 1176.00, which violated key near-term support at 1185.25-1181.50.

However, thus far there has been no downside follow-through. That said, both my hourly pattern and momentum gauges continue to argue for downside towards 1155-1150 next.

Only a climb that hurdles 1194-1197 will begin to neutralize my current outlook, while a climb above 1200-1204 is needed to reverse the near-term polarity altogether.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.