Will The FOMC Announcement Push The S&P ($SPX) To ATHs?

It certainly is possible, and often, when everything is looking like it is going one direction, the market is infamous for doing the opposite - the least expected. Sure, the market has been rising, but there are two wave counts (including a bullish one) that support a down move.

The first, shown here, is that this recent rally is really a wave B move before the next wave C down which implies a macro wave 4 pullback.

The next case is bullish, but it implies that a sub-wave 4 could be in the works for a larger wave up.

As you can see, even this bullish case is short-term bearish.

The only overall bullish case is that this impulsive wave is not done yet. Impulsive is impulsive, so if JPOW has anything bullish to say for the FOMC this month, then the impulse could continue and the market could be at ATHs before you know it.

That is 2 against 1 for the bullish case, which means that it is possible that it will be the prevailing wave. Time will tell!

Here is a video which illustrates the concepts further:

Dr. John