SPX (06/16/2020) - Bullish movement by FED's action

16 thg 6, 2020

FA
-FED took action today in order to stabilize the market. They announced they would buy individual corporate bonds (aka. corporate debt) which is a big deal. By doing this, FED can prop the market up even further, bail everyone out, and "create zombie corporations". This is a form of stimulus, legal by law. As for now, fundamental measurements won't work! For trading: bullish.
-FED's schedule for tonight: REPO + term = more liquidity, leading to bullish movement.
newyorkfed.org/markets/domestic-market-operations/monetary-policy-implementation/repo-reverse-repo-agreements/repurchase-agreement-operational-details
newyorkfed.org/markets/domestic-market-operations/monetary-policy-implementation/treasury-securities/treasury-securities-operational-details
-Spiking in corona cases are happening across the world.
worldometers.info/coronavirus/?utm_campaign=homeAdUOA?Si
-India and China are partially shutdowns due to new corona cases.
-More economic data will be released tomorrow (mainly the USA). Some of the data will be bearish, however, FED's testimony at 2:00 pm will determine the next move.
tradingeconomics.com/calendar
Note: There will be consequences if the FED takes these actions. However, things are much worse if they don't. Basically, the lack of liquidity will kill corporations as they're in critical stages: leading to more job losses and disrupting in productions.
Crashes are expected, however, we need to focus more on what's happening now as most of the people on Tradingview are traders, not long-term holders. Keep biases about the crash as minimal.

TA
-SPX is trading above all moving averages at the end of the day (on the daily chart): bullish.
-SPX is trading above EMA (built-in tool) - in both daily and hourly chart: Bullish
-SPX failed to fill the gap at 2960, a bullish movement took place: bullish.
-SPX is in bullish squeeze: bullish
-RSI: bullish
-SPX might find resistance at the 3120 level. If it breaks above or stops by it, it will be a bearish signal (not a crash, just pullback).

Tomorrow will be a gap up for NDX as FED's actions and the market TA are both bullish. However, there will be a correction taking place soon (profit-taking from long positions). So far the trend is descending, but we need more information from Tuesday closing to determine the next move.

Trading note: I bought SPY 311 and 314 call expiring 06/17 at 10:13 AM, then sold them for 103% gain EOD. I was expecting a pullback, however, the market was trending up according to TA. FED's actions were unexpected.

Good luck and thank you.