Once again the Fed changed nothing, and said basically nothing. The market rallied first with a nice head fake upside breakout, then sold off hard... with a huge spike in volume. Today's volume was about 226 million shares, of which almost all of it was in the last 2 hours of the day.
The 108 (SPY) level was hit and rejected hard. I still believe we will see 104 by this Friday. Then up next week to the end of the month. A small sell off (not worth gambling on) in the first day of the month of October, and a finally rally to 110 on or about October 5th-7th.
Once that high is reached, that will be "Gap Fill" from 2008. This will be probably the closest we will get to a crash over the following week. The market should drop hard and fast from this level. Finally destination will be around 900. Of course not during the first week, but for this first wave one down 900 should be great support. That could be in November sometime?
A nice wave 2 up, (probably in December when volume is light and the market can be manipulated higher), and then wave 3 down early next year. Look out 2010!
Everything5pounds