Alex and Tyler walk through GoNoGo Charts from a top down perspective with special attention to US equity markets following the announcement from Federal Reserve Chairman Jerome Powell on Wednesday. The fed rate hike remained in line with Wall St. expectations for a 75 basis point increase. News anchors celebrated a market “rally” which broke the 5-day negative streak.
However, the “rally” left much to be desired as trading through the afternoon was heavy. The S&P500 closed -1.25% off the highs of the day. More importantly, prices are still trading below the May lows, which are around $390 (3,900 in the index). While yesterday's rally was encouraging to the bulls, it did virtually nothing to improve the technical damage that has taken place recently. GoNoGo Charts quantify what is actually happening from a trend, momentum, volume and volatility perspective. The weight of the evidence remains sharply bearish.