A 3-step pattern that spots institutional buying BEFORE it hits the tape. That’s the 2 Sigma edge.
We are at a big moment for the stock market.
On one hand the Bears are saying we’re more overbought than we were during the Dot Com crash.
On the other hand, the Bears say rate cuts can keep us bullish through the end of the year.
And it probably all comes down to the Fed.
Here’s SPY:
You can just see how nervous traders are as the price has moved sideways.
And if we look at sentiment, we’ve seen a slight decrease in positivity since last week. The Fear & Greed Index is now in Neutral territory:
If the Fed cuts rates nicely, we’ll probably surge to new highs. If the rate cuts are delayed or smaller than expected, we could see the tumble the Bears are certain of.
Meanwhile, KeyCorp (KEY) has been on a tear.
It’s been ripping upwards for weeks and is now near a key breakout level.
Here’s the chart:
A break above $20 could mean the Fed gave the market what it wanted and KEY could explode upwards.
We’ll keep an eye on it.
Happy trading,
Scott
