What a wild day yesterday after the FOMC! If that's not a flush out then I don't know what is? This is the SPY daily chart and you'll notice a very important rising trendline from the March 2020 low that connects to the June 2022 low. Into the close yesterday that trendline was hit exactly with a 377.38 low and 377.39 close.
Afterhours it dropped more to reach 373.90 but is back above that trendline here this morning before the open. It's very, very important for the bulls to hold it I think as if they lose it we could see the 3639 ES low getting hit next and likely taken out. A one day pierce of this line is "ok" but it would need to recapture it the very next day. But we'd done the pierce now in the afterhours yesterday so I don't think it's wise to do it again today.
Bulls need to start moving up from here on forward and never look back at this low. You'll also see a purple dashed horizontal line on this chart, which was the FP of 364.68 from January 25th, 2022. That FP marked the low for the year in my opinion. I covered that fully in my Secret Codes post back on August 6th, so I'm not going to repeat it again here.
I still maintain that the lows are in for the year and that we'll be going up to a new all high and beyond into the end of this year. We are still in the bearish period until the end of this month so I'm not expecting anything big yet on the upside.
What we should do is start carving out some smaller degree wave 1's up and wave 2's down to setup a big multi-degree wave 3 up in October. As for today and probably Friday too I don't expect much... but we should move up. The market is still trapped between this 3800 low zone and the 4200 resistance area from the falling red trendline on my chart of the ES, which on the SPY here is basically the white 200 day moving average line extended downward. It's a big triangle on all charts and once it breaks out it won't look back. Have a blessed day.