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SPY- Bullish Momentum will Continue Today!

|Includes: SPDR S&P 500 Trust ETF (SPY)

The S&P 500 ETF- SPY is still headed in the same direction. We have a steady climb up. The most impacting thing for us to watch on the chart is the reaction to the Fed’s announcement yesterday. We started the day bearish (and that almost feels manipulated), then after the announcement we have a huge swing up ward and lots of buying. We are at the top of the Bollinger Bands but that may not slow us down.

 

Treasuries rose, pushing five-year yields to a record low, after the Federal Reserve said it will focus its asset purchases on medium-maturity debt as it tries to spur the economy.

 

And that has helped! World stock markets surged Thursday while the dollar slid against the euro after the Federal Reserve confirmed that it will buy $600 billion in government bonds over the coming eight months in a fresh attempt to shore up the U.S. economic recovery.

 

For now, though, the Fed's hope is that the policy will help drive down interest rates for households and businesses, giving the wider economy its source of stimulus -- figures last week showed that the U.S. economy is growing at an annualized rate of 2 percent, which is not enough to get a sticky unemployment rate of around 10 percent lower.



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