Europe closed before the Fed Statement. Three out of four indices were flat or modestly up. UK was weak, -0.68%. DAX +0.02%%, France +0.2%, Italy +0.18%. All indices are in sideways consolidations.
America was generally up modestly when the Fed statement came out. It then went on a roller coaster, down sharply, then up, then down a bit, then up strongly. At that point the Dow Jones was up more than +1%. As often happens, the initial movement then proved the right one. Dow Jones -0.39%, SP500 -0.26%, Nasdaq +0.1%, New York Composite -0.21%, Russell2000 +0.47%. The strong reading in the Russell2000 was reflected in the H/L Ratios. NYSE H/L 59% and the Nasdaq H/L 68.4%. Both readings are now above par. That suggests underlying strength in the market.
There were winners and losers in today's action. Big Losers: Banks -2.29%, Brokers -1.67%, US$ -1.05%. Big Winners: Gold Miners +2.45%, Airlines +1.85%, Bio-techs +1.8%, Utilities -1.33%, Real Estate Trusts +1.01%. Utilities and Real Estate are both related to interest rates. Yields fell across the board on bonds and treasuries. Bonds and treasuries were the amongst the winners today. TLT (10 Year Treasuries) up +1.22%. US$
Here’s a regular candle stick chart for the SP500:
You can see in today's candle the long upper trail - which indicates the big selling that occurred intra-day. The candle hit the resistance of the Super Trend Line then fell sharply. It finished just below horizontal resistance. Such a reversal candle is usually considered to be bearish - but it needs a big down day to confirm.
Money Flow Index is into overbought territory - above the top line of the Bollinger Bands. Stochastic is also above the overbought level. RSI and CCI could both rise quite a lot before being overbought.
Although the intra-day action was dramatic, it didn't solve any riddles. We'll have to see how the next session plays out.
US$ and Hard Commodities:
U.S.$ down -1.05%. Precious Metals Group was a big beneficiary Gold +1.03%. Base Metals +0.14%, Energy -0.93%. Iron Ore +1.4%to 56.80.
Despite the fall in the US$ Index, the Australian Dollar fell -0.33%. It finished at 71.71.
Oz Stocks in NY:
BHP -0.37%. Rio -1.21%. Westpac -0.27%. ANZ -0.3%. NWS +1.15%. RMD +0.69%.
Whatever happens today in our market, the finish will still be within the trading range - so nothing resolved.
(20min delay)
