Instant Risk Off Money Flow in Reaction to Federal Reserve October 30

Oct 30, 2013: 2:06 PM CST

In the immediate aftermath of the Federal Reserve policy announcement for October 30, markets moved in knee-jerk risk-off reaction to the news.

Let’s take an instant snapshot of cross-market money flow post-‘Fed’:

Federal Reserve Fed Day Money Flow Intermarket Cross Market Risk Off Risk-Off

Let’s start at the top-left and move forward:

The @ES or S&P 500 finally broke a persistent rising trendline despite multiple prior divergences.

Note the intraday divergences and new momentum lows on the break which suggests potential additional downside action.

Somewhat similarly, @GC or Gold Futures also broke sharply under a rising (wider) parallel trendline pattern after lengthy divergences into a new momentum low.  The key level to watch remains $1,345.

Crude Oil (@CL) also broke a rising ‘retracement’ or flag trendline to new recent momentum lows on a full-day sell-off even ahead of the Fed News.

Finally, the US Dollar Index (@DX futures contract) had been forming a critical support or intraday “Rounded Arc Reversal” pattern with divergences into the 79 level.

The prior two sessions saw hidden bullish action ahead of today’s spike higher post-Fed.  A Bullish Dollar is traditionally a “Risk-Off” play.

Continue following the immediate action and any further reversals that build in the Risk-Off direction… or whether Risk-On money flow overrules everything else to dominate the supply/demand relationship.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Comments

2 Responses to “Instant Risk Off Money Flow in Reaction to Federal Reserve October 30”

  1. Quick Charting Shifts in Intermarket Money Flow and the Fed | Afraid to Trade.com Blog Says:

    […] Money Flow and the Fed Nov 1, 2013: 12:55 PM CST As a follow-up post to Wednesday’s “Risk-Off Money Flow in Reaction to the Federal Reserve,” let’s take a snapshot of the current “cross-market” money flow to see […]

  2. Snapshot of Intermarket Money Flow - Investing Video & Audio Jay Taylor Media Says:

    […] Rosenbloom: As a follow-up post to Wednesday’s “Risk-Off Money Flow in Reaction to the Federal Reserve,” let’s take a snapshot of the current “cross-market” money flow to see that indeed a […]