The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time and to mitigate risks to economic activity. The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability.
The markets interpreted this as a sign the Fed would pause on the rate cuts. As a result, the markets tanked hard after the announcement. More importantly, the need for confirmation from the SPYs or IWMS of the QQQQ rally didn't happen again.
Note the QQQQs are still in a strong upswing.
But....
The SPYs and the IWMs are still trying to break out from consolidation patterns into a place where they can get some strong bull market style running going on. But they haven't broken past key resistance areas. And until they do, we've got a problem.
2 comments:
Bonddad,
Enjoy the analysis and commentary - AND the Friday canines - but why is the failure of a bullish breakout not supported by fundamentals a problem? Isn't the Russell 2000 a bit rich on a P/E basis(particularly if we are going into ...er a 'slow patch')?
Aside, it looks like SPY and IWM bounced off overhead resistance with increasing downside volume
And perhaps the QQQQs have moved to the top of the trading channel? Hmm.
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