Market Takes a Hit Exactly As Predicted...

So it starts exactly on time and exactly when I said it would...

The US market took punishment this week as it made two consecutive negative days this week so far. In fact, it was the most bearish two days of 2018 so far, with the S&P500 clocking a total retreat of -1.76% or about 50 points. In fact, it was the biggest two days retreat since August of 2017!

But is this enough?

Is this enough of a retreat to bring the US market out of short term overbought condition and back onto a level which encourages healthy buying and therefore new highs?

Well, not quite yet as it seems. I won't be surprised to see a period of bearish / sideways inclined trading for the rest of the week for the 30MA line to catch up a bit before this market is healthy again.

The Feds will be making their announcement this afternoon and once again, with little more bullets on their plates, it is not expected that they will be doing anything today. However, at this point of time, under such economic conditions, any rate hikes by the Fed will only be construed as a vote of confidence in the growth and strength of the economy and end up being a positive thing for the market anyways. As such, this is no longer an event to be negatively concerned about for now.

Even though the market did take a plunge (not surprisingly since I have largely expected it), my Ride the Flow options residual income strategy continues to stay on track to making about 15% this month without any form of adjustments!

Yes, thats the power of this trading system that I have created. Learn about it at http://mastersoequity.com/MOE_ridetheflow.htm

For now, the market turns a short term neutral trend within an intermediate and primary bull trend.