HOW FED SOLVES THE MOMO CROWD DILEMMA WILL DETERMINE THE STOCK MARKET DIRECTION IN THE SHORT TERM
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Fed’s Dilemma
Please click here for a chart of Nasdaq 100 ETF (QQQ).
Note the following:
- The chart shows that QQQ is up against the lower band of the resistance zone.
- The chart shows that this rally has not been on high volume. This is a negative.
- The chart shows RSI divergence. In plain English, this means that as price has risen, RSI has declined. This is a negative.
- FOMC is meeting starting tomorrow.
- FOMC will announce its decision at 2pm ET on Wednesday, followed by Powell’s press conference at 2:30pm ET.
January 30, 2023