Fed Day Chop

Dow: -164.55…
Nasdaq: -39.19… S&P: -3.54…

The S&P  dropped 0.1% today in another tight-ranged session, as the broader market showed little reaction to the Fed’s policy decision or earnings news. The Nasdaq (-0.3%) and Dow (-0.5%) also closed lower, while the Russell 2000 (+0.1%) closed slightly higher.

The FOMC did as everyone expected by keeping rates near zero and leaving the pace of asset purchases unchanged by at least $120 billion per month. In his press conference, Fed Chair Powell said it wasn’t time to start talking about tapering asset purchases.

The bottom line is the Fed is still playing ball. The clock is ticking on these jackasses though and the reckoning should be a hoot when it happens.

We are probably never going to see 100% of S&P 500 stocks trading above their 200-day moving averages, but 96% is very high, and that’s where we are now.

This is not telling us we must move lower imminently but definitely shows things are slightly elevated.

I pay more attention to the McClellan Oscillator and relative strength levels on the indexes and although slightly elevated, none are overbought.

I am brief tonight, but as you know I added two new names today. OCGN, which was highlighted last night, and ERX.

By the way, I made an error on the entry price on ERX (thanks to Chris, a member for pointing it out). You probably figured it out, but the entry was 24.50, not 25.50.


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