For the everyday investor and trader committed to growth
  • Home
  • Contact

Crush The Market

US Markets Rescued By The FED  - Again!

9/13/2016

0 Comments

 
Overnight the US markets were rescued by the FED with all 3 major indices recovering the majority of Friday's losses. The markets panicked last Friday when FED official Rosengren indicated that an interest rate hike in September is possible see: US markets fall strongly over rate rise fears

On Monday it was a completely different story with the markets reversing and jumping significantly higher on FED official Brainard commenting that ..."the case to tighten policy preemptively is less compelling". After the comments were made the markets initially fell before reversing course and climbing for the rest of the trading day. See chart below for overall market reaction.
Picture
Click Image for source: Zerohedge.com
All 3 major stock indices reacted positively on the dovish comments by Brainard, with both the S&P 500 and the DOW jumping back above the support level that it fell through on Friday (see charts below). The NASDAQ 100 was not as lucky climbing to just below its previous support level of 4770 which is a bearish signal.

Lastly because of the reversal on Monday all 3 major indices are still within their up-trends that have been in place since February this year.
Picture
S&P 500 closes above previous support level
Picture
The Dow jumps back within sideways channel and previous support level
Picture
Nasdaq 100 closes just below previous 4770 support level.
Who Is In Control?

Looking at the last 2 trading days and the sharp moves in either direction for the major stock indices and other markets, its clear the FED's attempt to gauge if the markets were OK and comfortable with rates rising, showed who really is in control of interest rate policy in the US. I can give you one clue its not the FED.

Sources:
zerohedge.com - 1
zerohedge.com - 2
0 Comments



Leave a Reply.

    Tweets by crushthemarket
    Subscribe Below
    Via Social Icons
    Picture
    Picture
    Picture

    Archives

    April 2020
    February 2020
    November 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    December 2018
    August 2018
    January 2018
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016

    Categories

    All
    AUS Economy
    AUS Stocks
    China Economy
    Commodities
    ECB
    EU
    EU Companies
    FED
    Forex
    Investing
    Markets
    Pension Funds
    Property
    Superannuation
    Technology
    Trading
    US Economy
    US Stocks

    Author

    I am a private trader and equities investor that loves the trading and investing world, following the markets and everything in between.

Proudly powered by Weebly
Photo used under Creative Commons from okchomeseller
  • Home
  • Contact