Buy the rumour, sell the news

If this turns out to be a rising wedge, then this could be a quite profitable trade. And this could quite possibly lead to the S&P500 printing the "head" of a massive "head and shoulders" pattern starting from September. MACD suggests weakness in the run-up as the market remains uncertain.

Be quick on your feet and always keep an open mind to any outcome.

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Trade invalidated. Going long until: 4717. That is the 1.618 Fibonacci level. And then shorting from there. It just so happens to be at the very tip of the rising wedge as well.

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Regarding the latest infrastructure bill.

It feels like the market already priced this in with this latest run.

They will need to hire a lot of people in the midst of a labor shortage. That means very high salaries and wages just to attract people. This will send us even deeper down the wage-price spiral.

The Feds said they are waiting to hike interest rates until unemployment goes down.

The new infrastructure bill will increase inflation and cut down on unemployment - two things that will force the Feds to increase interest rates earlier than expected. This will probably come as a surprise to the market and spook it.

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