The stock market ended the Wednesday session with solid gains that were paced by the Russell 2000. The small-cap index jumped 3.1% while the S&P 500 settled higher by 2.0% with all ten sectors registering gains.
As expected by some, the Fed removed the “considerable time” language from its policy statement, but that reference was replaced with a call for “patience,” which essentially conveyed the same message.
We’re in a market held captive by semantics and where the Fed decides to put a comma or a period. But who cares because the market gods liked it today.
McClellan Oscillator was terrific the last few days and unless we crash tomorrow, did a decent job of calling a buyable bottom (yesterday), even though we gave lot back late yesterday.
The reading was very oversold and though I was very long, I slept a little better last night.
It’s very possible that Santa and his reindeers have been unleashed and will bring major gains for all as we cruise into year end. It wouldn’t surprise me in the least if we go back and tag highs for the year. Of course oil is still in the mix and if it dropped down to 50 that could take the bloom off the rose.. We’ll have to see.
The McClellan Oscillator is my favorite tool during overbought and oversold environments. It was on the money this time around as it was in August and October and June of 2013.