After three days of steep selling, the market finally got a solid bounce today. Out of the gate, buyers seemed ready to engage. The Federal Reserve signaled its readiness to raise interest rates sometime next year, showing confidence in the US economy. After some initial volatility after the Fed's announcement, more buying continued.
The Dow was up +288 points; SPX jumped +40.15 points; Nasdaq vaulted +96.48 points.
SPX jumped +40.15 points to close at 2012.89. It closed below the resistance at 2020.
Nasdaq vaulted +96.48 points to close at 4644.3. It closed above the resistance at 4600.
Financial stocks popped even higher after Fed's rate announcement, sending FAS up more than $7! Energy stocks also bounced today: EOG (+6.63%), XOM (+3.02%), CVX (+4.25%), RIG (+8.52%). After some steep selling GOOG added $9.5 and PCLN popped $29.5! NFLX jumped +5.44% after DISH decided to add the Netflix app to its latest set-top boxes.
After the market, ORCL went up +5%, posting better-than-expected quarterly results. CRM went up +6% today!
Although the market got a good bounce today, I'm still cautious. I think we will need to wait a couple of more days to see how things hold up. SPX is still below 2020. Financials should play a big role, so, let's keep an eye on FAS! GS lagged the rest of the group today, which is an interesting note. I still like STI and PNC.
Good night and HappyTrading! ™