Today the clue that we got thanks to the Fed is that the Market is still pretty weak. This time the Fed Chair Jerome Powell made some hawkish comments about the potential aggressive rate hike that will be discussed in May and the Market tumbled. I don't trade the news but I like to see how the Market reacts to them, in this case the Market didn't stand well to the Fed's declarations.
There have been two false downside breakouts, none of them has generated an important rally after the First Higher Low completed. The S&P 500 keeps moving between 4,400 and 4,482 (black solid horizontal arrows).
The S&P 400 (mid-cap index) also had significant losses. It couldn't even reach the 2,742 weekly resistance where it has declined multiple times in the past (orange arrows). This Market is still very fragile, the same old news keep affecting the main indexes as they have for months now.
The New Highs and New Lows numbers just confirm the increasing supply. If the selling pressure doesn't decrease in the next couple of day, it's likely that the Market tests the February and March Lows. If there was strength from the Bull's side, the New Monthly Lows wouldn't have increased at more than double than yesterday's numbers.
