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It’s Not About FOMC
The first rule of the market’s reaction to FOMC is, it’s not about FOMC. Whatever happens is what Big Money was going to do anyway. And that’s because Big Money already knew what was going to happen at FOMC and also had a very good idea of what Chairman Powell was going to say. If Nick Timiraos at the Wall Street Journal knows what Powell is about to do then you can bet that Wall Street’s Finest do too.
This is why technical analysis is so important. It means you can sit back from the noise - the news, the press conference, the tweets - and focus on the signal - securities prices.
So let's look at our usual charts in that light. Forget there was an FOMC; forget that there was a CPI print. Just look at the indices' movements relative to themselves - that's all that waves and Fibs are - to try to spot likely reversal points.
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