Good evening StockBandits!
The RUT made the only, ahem, “meaningful” move today as it notched a brand new all-time high by – are you ready for this? – 0.01. I’d say that’s much less than by a nose – more like a freckle. Technically though, it’s a new high and to see the small-caps able to do that may actually be a positive sign for the bulls. They are, after all, the more speculative bunch, and they’ve been showing relative strength for a solid week. Overall today, we saw mixed results with the NAZ and RUT each posting modest advances while the S&P and DJIA each retreated but stayed inside Monday’s range.
The stage is now set for the week’s main event, which will be the Fed tomorrow afternoon. Today started their 2-day meeting, which concludes tomorrow with a 2pm ET announcement and then the press conference 30 minutes later. Being one of the more highly-anticipated meetings in awhile, we could see some bigger price spikes once the news is out. Fed days are generally marked by some initial indecision which can last until the following day, so stay on your toes in case of some reversals.
Although we’ve seen a decent lift off last week’s low, it hasn’t yet taken the form of the V-shaped, vertical recoveries like previous pullbacks have. That leaves the door open for anything going forward, such as a lower high (if prices roll over again) or an attack on the February highs if widespread strength emerges. That keeps it a market of stocks, so stay selective until we see some better unity among the averages.
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
