Last weekend I posted about wickless gaps and how those are continuation patterns.
I also made a statement that I did not think we would see SPX at 4K for a while.
The above chart shows my thinking process since many traders on TV are calling for a possible retrace to 4020 levels.
IMO the June 6th weekly candle made a very bold statement...it bearishly crossed the wickless bull gap that was created March/April of 2021 and then proceeded to make it own bearish wickless gap.
***In early May we tested the 4K area and closed below it on the weekly however the following week (May 23rd) we bullishly crossed right though that wickless gap. THIS WAS THE BULL CASE-we needed to HOLD this level for bullish confirmation but the bullish case has failed.***
On May 19, 2022: “What we need to see is inflation coming down in a clear and convincing way, and we're going to keep pushing until we see that,” Powell said Tuesday during a Wall Street Journal live event. “If that involves moving past broadly understood levels of 'neutral,' we won't hesitate at all to do that.”
Wed, June 15, 2022: Powell announced a 75 bps rates hike vs. a 50 bps rate hike that was anticipated in May.
Moral of the story-Don't Fight the Fed.
(Of note on this chart are uncleared gaps on the weekly SPX-there are a couple even lower than 2200)