Stocks Rally "After The Fed" Spoke
In the Trading Recap, we look at how the four major Equity Index ETFs traded - SPY, QQQ, IWM and DIA. The winner today was IWM which rose by 0.79%. However, at the lows of the day IWM was down by -1.31%. The index bottomed at 10:48 a.m. EDT and then rose by 2.16% to its closing finish.
Today was a great example of "before the Fed" and "after the Fed". Clearly, after the Fed was much better for all indexes. The DIA closed up 0.58%, QQQ by 0.41% and SPY by 0.34%.
It is notable that both SPY and DIA are back to overbought on my proprietary RSI Indicator but it could be good overbought where the score stays above 70. IWM and QQQ see their scores in the 60s.With the Fed out of the way for now, I expect a test of 4000 on the S&P 500 and 400 on SPY before the week closes out. We will play this idea in Options Index Trader tomorrow.
Yesterday we stated, "Tomorrow I expect upward action into the FOMC announcement and presser.That has been the trend of recent meetings". This is exactly what we got and I expect more upside tomorrow before a Quadruple witch on Friday.
Have a good night,