The market is pumped with so much liquidity that it has a few generations of traders who have never had to deal with the environment we are in. , The NASDAQ 100 is up slightly during Thursday’s trading session, as are we. trying to recapture the 50 day EMA. Since then, a slightly widening wedge has formed in the market, a sign of increased volatility and potential trouble. I think it’s probably only a matter of time before we see some sort of resolution in the expanding wedge. An expanding wedge usually means that the market is trying to figure out what it wants to do with itself, and is usually associated with negativity. Advertisement Want to test your skills? Open MT Free Demo Now! START That said, we have the CPI numbers on Friday and that is likely to be the most important factor over the next 2 hours. Markets are also likely to look ahead to next week’s Fed meeting as Wall Street traders look for the „money supply” they’ve had for the past 13 years. The market is pumped with so much liquidity that it has a few generations of traders who have never had to deal with the environment we are in. This is part of what has been going on for a while as we look at traders who really believe that the Fed is there to support the markets and put money to work. Unclear behavior going forward Also, it’s the end of the year, so be aware that some „window dressing” comes in as traders and fund managers have to tell their clients that they have all the right funds. . After all, many funds have taken a huge hit this year, with many down around 30 percent. Therefore, it is very likely that we will continue to see a lot of illiquidity, especially as illiquidity becomes a big issue, especially after the Fed meeting next week, which is the last major data point to address. No doubt there could be a „Holy Rally”, but I also have no doubt we could split up quite significantly. In the meantime, I think we’ll continue to bounce around in the same general vicinity.