FOMC tomorrow is going to pop the RSI divergence that's forming.
.. and we have two recent gaps to fill.
My best guess: 50BPS hike announced tomorrow, and we fill both gaps. SPY 400, if just for a moment before we tank again.
Second best guess: 75BPS hike, and we only fill one gap, then resume the downtrend.
I think the only red scenario is the 100BPS hike, and I'm not betting on that scenario. I think they know what they'll trigger if they do 100.
.. and we have two recent gaps to fill.
My best guess: 50BPS hike announced tomorrow, and we fill both gaps. SPY 400, if just for a moment before we tank again.
Second best guess: 75BPS hike, and we only fill one gap, then resume the downtrend.
I think the only red scenario is the 100BPS hike, and I'm not betting on that scenario. I think they know what they'll trigger if they do 100.