Encouraging Words from Fed Keep Market Afloat

Stocks hopped out of the gate this morning, cheering better-than-expected report on durable goods. But, just before the Fed announced its decision on rates, the market became unstable. The Fed kept rates unchanged, between 0 and 0.25, and said that inflation is contained. As usual, the market was very volatile immediately after the Fed's statements were released. In the end, most sectors were able to retain some gains.

Chinese internet stocks were very strong today. SNDA led the charge, jumping almost +12%! SOHU followed with a +3.89% win. BIDU gained the most "points", up $10.51. NTES hopped +7.79%. SINA was up +3.13%.

The Dow ended down 23.05 points; SPX added +5.84 points; Nasdaq gained +27.42 points:

INX2 (Internet) led the techs, up +2.27%. GDX (gold miners) was strong again, adding +3.11%, while XME (metals and mining) rose +1.79%. UNG (natural gas) slipped 2.83% and USO (oil) was down 0.86%. XLF (financials) garnered +1.22%. XLE (energy) and PBW (clean energy) were both in the green, up +0.4% and +2.87%, respectively. FXI (Chinese ADRs) advanced almost +3%.

SPX

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SPX added +5.84 points to close at 900.94, just above the 900 level. The 10-day MA and the MACD slid.

Nasdaq

Nasdaq gained +27.42 points to close at 1792.34. It closed above its 30-day MA.

Well, the Fed did what it can to help calm the markets. SPX closed above 900; Nasdaq tested 1800 and closed above its 30-day MA. VIX dropped back below 30. But, this market will need to do a little more to prove itself. Although the financials made some gains today, they still remain on the weak side. Commodities have made some bounces in the past 2 days; but they are still very sensitive to how the dollar is trading. The strength in the Chinese Internet stocks was certainly refreshing today. SNDA has been a strong stock all year and may be seen as a buy again after the recent pullback. BIDU has more than doubled in the past 3 months, but, it's about $30 off from its recent high. NTES could easily test $38 again. SINA is lagging a bit and could have some catching up to do.

Good night and HappyTrading! ™