FOMC Minutes

The Nasdaq100 did manage to push the indexes higher. Yet, the major indexes (S&P 500 and DJI) were still in the negative area.


Because of the today's afternoon recovery, many technical indicators suggest possibility of further recovery. However, I would prefer to wait. The indexes are hitting the same top third times in a row (last three trading sessions) – we had two bounces down and we may have third one. In addition the longer-term charts are showing bearish sentiment.

Tomorrow, we will have minutes of FOMC meetings and we may expect higher volatility. The simple strategy could be recommended to wait the end of the session in order to see trend development after the announcements.

FED Rate Increase

After the market close QQQQ (Nasdaq 100 tracking stock), SPY (S&P 500 tracking stock) and DIA (Dow Jones Industrials Tracking stock) sharply went down around 16:30 as FED announced the rate increase to 0.75%. As a rule FED rate change usually affect stock market in short-term only and as a rule the indexes are very volatile during these announcements. It could be that the indexes will be down tomorrow at the market opening - let's see if they stay the rest of the session in negative area.