Chart of the day

Where do we stand fundamentally?

The Federal Reserve's decision to keep interest rates unchanged has contributed to a cautious market sentiment, with the SPX closing lower amid these announcements. Tech stocks, particularly those involved in AI like Nvidia, have been notably affected.

There's been notable volatility in the SPX, with traders focusing on key levels for potential entry and exit points in their trading plans, especially around significant economic announcements or news like Trump's tariff policies.

The SPX is testing 6150, which is now acting as strong upside resistance for an extension of the third long-term wave higher. This is strong near-term resistance for an upside continuation, and we need to see a breakout higher for an extension to 6270. A break below 6000 can invalidate a third long-term wave extension higher.

We are in a possible terminal phase of an uptrend third long-term wave with an indicated resistance of 6150. A breakout above this resistance will lead to an extension higher in the prolonged third wave and a rejection here intraday and daily will lead to a reversal in the fourth wave pullback.

_{You can take a near-term short-trade entry with an SL above 6300 to in the case of a rip higher to 6240.}