We finally got some decent intra-day volatility – and not surprisingly on an FOMC announcement day. The Hilbert Sine Wave signaled a nice "Pull Back" (PB) to "End of Trend" (END) combination, shown on the chart below.
Hilbert Sine Wave "End of Trend" (Emini 81 min)
This does not necessarily mean that the Bull market is over – it just means that we'll probably go into a period of cyclical activity or consolidation before a new trend develops.
Climax Volume (Emini 135 min)
We ended the day with a Climax Volume Down Bar. The last time we saw volume like this, the Professionals stepped in, the 990 level held and the rally continued.
The question I have is, have we spent enough time above 1,050 for the Professionals to distribute their Long positions to the Amateurs? We've not seen a blow off move and clear panic buying by Amateurs. But we've tested 1,070 a number of times and not held above it.
Volume-Based Trailing Stop (Emini daily)
The volume-based trailing stop has moved up to the 1,052 level. My best guess is that we'll play with this level and see some cyclical consolidation.
Hilbert Sine Wave Customer Follow-Up Video
Just to let Better Sine Wave customers know that I'll be posting a follow-up video on today's "End of Trend" warning signal. You'll receive an email with link to the video shortly.
