The S&P 500 has finally broken down on account of yesterday's FOMC results. Stocks did not digest the inflation and interest rate outlook well. Additionally, we finally got our breakdown from the bearish butterfly cypher pattern. Based on this pattern our target for the S&P was 4169, or 4188, effectively a 50% retracement of the CD segment forming the last vertex of the pattern. We are currently finding support at the 0.382 level for the moment. Stocks look like they are finding good support at a cluster of levels here, so taking at least some profits would be a good idea. The Kovach OBV has dipped to reflect the selloff, but appears to be bottoming out, perhaps indicating that we may see support or at least some ranging at current levels to feel out the price territory before its next move.
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