Fed Up?

posted Oct 29, 2014, 9:50 AM by Katie Shook   [ updated Oct 29, 2014, 9:51 AM ]

I've learned better than to guess at the market’s reaction to the Fed.  All I know is that recent history tells me the markets go up after FOMC meetings.  What remains to be seen is whether or not this trend continues.  The conversation has shifted to when the easy money ends – is that enough to change sentiment?  It depends on the language.

The technical trend is back into positive territory for the daily trends.  Weekly trends are close behind.  It’s not to a say a pull-back couldn't occur (and the FOMC language could spark it), but the October dip is all but gone from the technical picture.  About the only thing I can find to justify a negative case is the ‘head-and-shoulders’ pattern that started back in August or so.  A close above 1991 (only 6 more points) would theoretically negate that pattern.

No predictions today — I've got my feelings hurt too many times.  Look for increased volatility — and possibly some selling ahead of the announcement.

ScreenHunter_05 Oct. 29 06.23

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