Good evening StockBandits!
Fed day has come and gone, and so far not much has changed. From the announcement time to the closing bell, two hours passed, and yet each of the averages finished just a couple of points from where they were pre-FOMC. Either it’s the non-event the market seems to be treating it as, or a bit more processing time is needed – and sometimes that’s the case with Fed days.
Prior to that, we did see some weakness on the day as the indexes remain reluctant to break out and run away from their ranges. The RUT backed away further from its recent 1278 high, the DJIA again backed off the 18100 area (Dec high), the S&P put 2119 slightly farther away, and the NAZ continued to backpedal for the third straight session, although it held 5000 after an intraday test.
All in all, the market remains indecisive, lacking momentum, and on hold listening to elevator music while waiting for the next catalyst. We’ve seen similar periods of lateral movement, so it’s nothing new, it just doesn’t offer conditions which are conducive to building exposure. It’s choppy out there, and traders are simply conditioned by recent months to fade the moves, helping to perpetuate the reversal-prone conditions.
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
