Contributor Since 2009
David Chojnacki S1F Market Technician
As expected the Market was flat for most of the session, as investors awaited the FOMC rate announcement. Though the FED made a decision to reduce QE by 10B a month, they also signaled that their policy will remain accommodating for the foreseeable future and rates will not be raised anytime soon. This action was met favorably for equities. Buyers swarmed into the market to buy up equities. The S&P traded down to its 50D-SMA(1768) and then rocketed 42 points from there in the last two hours to close at a new closing high. At the close, the DJIA was up 1.8%, the S&P added 1.6%, and the Nasdaq100 moved up 1.1%. Breadth was decidedly positive, 4 to 1, on above average volume. RSI's moved up and are back in the low to mid 60's for the major indices. ROC(10's) advanced strongly and moved back into positive territory. The DJIA and S&P ended at new closing highs and just a few points below recent intra-day highs. The Nasdaq100 closed just 7 points below its recent closing high of 3516. MACD's remain below signal, but the DJIA and S&P moved back above their 20D-SMA's. The VIX which had advanced for 6 straight sessions, dropped like lead balloon after the FED announcement. The VIX lost 14.8% to finish at 13.80. The S&P near term support is now at 1808 and 1800. Near term upside resistance for the S&P sets up as 1812 and 1825. The Nasdaq100 near term support is now at 3500 and 3488. Near term upside resistance is now 3512-16 and 3525. The 10 yr. is trading at 2.89%. The Nikkei was up over-night and European markets are following the strong US market in early trade. Some key reports this morning(see above). Futures are slightly lower this morning versus fair value.
Major Economic Reports Today
Initial/Continuing Claims-8:30am Existing Home Sales-10:00am Phila FED-10:00am Leading Indicators-10:00am NatGas Inv.-10:30am
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