I ended my post yesterday by saying 7610 was the important level to the downside. SPX hit 7610 and then rallied all the way back to 7650 and closed in the green for the day. On the week, SPX was still red by just 6 points – mostly an “uneventful” week if you look at it from a net change perspective.

The pattern I spoke about yesterday compared the move from the previous FOMC meeting to this one didn’t exactly play out like a mirror image, but I think the similarities still hold. While today wasn’t a massive rally, we did see a decent recovery off the lows and ended green.

The daily candle might be red, but the long wick on the bottom is the take away story. From the low on Wednesday to the high today, SPX has rallied over 150 points. That is a pretty sharp up move and it is momentum that the bulls can build on next week.

September triple witching has come and gone, and most of the day today was pretty boring. While we did see a recovery from 7610, the move up was mostly slow and steady until the end of the day.

SPX is back in the channel that we were tracking last week. The breach on Wednesday ended up being a fake out and the retest held and we are right back in the middle of it. Perhaps a tag of the upper end is coming next.

The price action has been choppy with a slight downside bias since the all time highs, but it appears that we are in the middle of an upswing within that chop.

Overall, a pretty fun week with good two sided trade and a market that ended up no where at the end.

I’ll talk about that more along with some other things during my weekend update.

Stay tuned!