We have been on point with our price targets all year for the indexes and yesterday's close put the bulls right where the bulls wanted to be ahead of the Fed's big announcement this afternoon. Of course, we could see a sell the news event if Bernanke says what the markets don't want to hear but for now, the market appears to be bullish heading into the announcement.
The Dow gained 138 points, or 0.9%, to close at 15,318 on Tuesday. The blue-chips traded to a high of 15,340 and triggered our 15,300 target for a possible push to new all-time highs (north of 15,542). A close back below 15,200 will likely bring 15,000 back in play but we are looking for a push to 15,500 with a Bernanke surprise.
The S&P 500 added nearly 13 points, or 0.8%, to end at 1,651.81. The index reached a peak of 1,654 and looks poised to challenge 1,675 on continued strength. The all-time high for the S&P is 1,687. A move back below 1,640 keeps 1,625-1,600 in the mix.
The Nasdaq jumped 30 points, or 0.9%, to settle at 3,482. Tech traded to 3,488 before pulling back and holding the 3,475 level. A run past 3,500 is in the cards on bullish Bernanke comments while a dip back below 3,450 keeps 3,400 in play.
The Russell 2000 advanced 12 points, or 1.2%, to close at 999.99, no kidding. The small-caps kissed a high of 1,001 before finishing just below 1K. This was the fifth time the index has traded above 1,000 but still no cigar on closing above this level. If cleared, the bulls could push 1,025 by the end of the month.
The S&P 500 Volatility Index ($VIX, 16.61, down 0.19) slipped 1% and traded in a tight range with the high at 16.95, the low at 16.46.
We have a ton of updates and hopefully another triple-digit winner at the open. We took 2 new trades yesterday and one of them was an earnings trade we planned on being in-and-out of in less than 24 hours. Of course, we needed the company to beat estimates with higher revenue and we got both.
Please pay close attention to our trade instructions this morning and we will likely have a Profit Alert shortly after the opening bell. Today could be volatile so make sure you stay connected with us by following us on Twitter! This will let you know the instant we send out a hot update.