Markets end the week down post FOMC

I am on a break at the moment but I will continue to monitor what is going on. I might just do an update on the weekends over the festive season.

I said in previous posts we need to see where the dust settles especially with the option expiry on Friday. We have had quite a heavy sell off to end the week on the back of that event since the FOMC. All of these indices have the monthly MACD crossed down, so this is not a situation where you are going to see the markets make new highs. We can not know how this will play out. All we can do is look at the levels and act accordingly.

I have been following this domed house pattern on the Dow Jones weekly chart. We have had another rejection this week. The bulls were hoping for a breakout on the Fed rate rise but I was not so sure that would happen. That flat kijun was my main reason for showing caution because I know how powerful it is. It acts like a magnet for price.

The SPX weekly chart here also rejected off the kumo top resistance and is in a range above the flat kijun.
 

$RUT weekly has ended the week on support below the kumo. RUT is the only one below the weekly kumo and kijun at this stage. It remains in a range at this stage. This could be a head shoulders pattern. It will be confirmed by a lower weekly close in the week ahead.

$NDX weekly is the only one above the weekly kumo. It made a false breakout. See how it goes in the week ahead.

In summary the outlook is more bearish than it is bullish at this time, which will be much to the dislike of the Fed who thought they were acting to prop up the markets. We will have a better idea when we see how things go in January 2016. Don't be surprised to see QE4 about mid year if the market declines. That is what I expect.