BULLS HAVE TO DEFEND THE 50 DMA
Disappointing reaction to yesterday's FOMC announcements but given the lack of a terminal pattern in the bounce off the June 13 higher low and a doubtful impulsive decline I remain inclined to consider that the assumed wave (B) rebound from the June (6) low is still in progress, in which case one more up leg would be feasible.
In the 60 min chart we can see that so far, from the June 6 low the sequence of higher highs/lows is still in force hence in the range 1622 - rising trend line bulls could attempt to abort the kick off of a larger pullback within the option of the Zig Zag down.
Therefore I give the benefit of the doubt that the pullback in progress is not over yet establishing the line in the sand at the 50 dma = 1618.
An eod print below the 50 dma will most likely solidify the scenario of a larger correction from the May 22 high.
How could price unfold one more up leg?
At the moment I can only think of a possible Triangle if price does not breach 1614.91.
