Early Tuesday morning, I put out an update to our members of ElliottWaveTrader.net that noted that the 3135 region as the top of our resistance region, which can point us lower once struck.
Now, we all know that the “surprise” rate cut by the Fed should have been viewed as a positive to the market. In fact, most expected the Fed to act soon, and were certain how this would send the market soaring again.
However, I continue to reiterate that when the market is in a positive sentiment trend, the Fed action will always be viewed as positive. Yet, when the market is in a negative sentiment trend, the Fed will not likely be able to stem the tide of negative sentiment. They simply cannot change the sentiment of the market, despite the common misconception to the contrary.
Well, if you were following the market, you would know that the market spiked EXACTLY to the resistance target we noted early Tuesday morning, and then reversed in a 160-point…