Lots of Intra-day Drama on Status Quo Fed Policy

 
It was an interesting trading day for S&P500… too much of drama and Up, Down and Nowhere action for a status quo policy.

Here’s S&P500 Emini Futures Intra-day Chart

As you can see in the chart above: the day started with strength and Optimism. S&P500 Futures rallied from 1685 all the way to 1692.5 before Fed’s policy announcement and then drifted down to 1685 just before Fed made the policy announcement. It was a quiet period. Then came the status quo policy
Federal Reserve Announces No New Change To Policy, But Flags Low Inflation As A Risk
The reaction was of the relief and S&P500 did a sharp bounce only to sell off on some tapering talk/risk. Emini futures slipped below 1685 inviting shorts…only to be eaten up.
As it always happens in Bull market – the shorts get squeezed and that’s precisely what happened. S&P500 futures managed a stunning recover from below 1685 all the way to 1694. It was a totally one way move. There was a real panic among shorts. Lots of traders would have covered shorts and gone Long – Hoping for fresh breakout.
Did it happen? – No [Policy days are too volatile to trade. You have to be really lucky]
Just when everyone thought that on spot S&P500: market is about to make new HIGH above 1698: well market sold off

S&P500 sold off from 1698 in a pretty dramatic and linear fashion. The futures slipped dramatically to 1681 before making a minor comeback. On a daily chart: S&P500 has printed a large exhaustion tail on the upside.
How does Chart look now?
S&P500 is trading near all time high. The resistance is now clearly developing at 1698. Despite being in bull market, there are signs of exhaustion at the top and one should not rule out some pullback to make the market healthy for upmove. The next data point market will be keeping an eye on: US Jobs data on Friday. There is nothing wrong Globally and Indian market has more to worry locally than Globally.