The big news yesterday was the dollar, which moved though several key support areas on high volume. Over the last few weeks, I've commented that the dollar was forming a selling climax, largely based on the prices bunching at a low area and converging around the EMAs. The Fed's move into QEII is a strong fundamental development that will provide strong, downward momentum for the dollar going forward.
Stock prices opened slightly higher (a) and moved sideways for the first hour of trading, after which prices moved through key EMAs (b) and settled near the 200 day EMA until the Fed's announcement. Notice that the period right after the Fed announcement was extremely volatile (d), with prices moving strongly accompanied by higher volume. However, prices finally made two pushes higher at the end of the day (e and f).
Notice that stock prices moved through key resistance levels yesterday.
Treasury prices gapped higher at the open (a) and traded sideways until the Fed announcement (b). Prices dropped hard at first (c), but they found support at key levels (d) before rebounding at the end of trading (e).
Treasury prices retreated to just below the 50 day EMA (a), but have since rebounded to the 10 day EMA level. While the short term trend is moving lower (the 10 and 20 day EMA), notice the 50 day EMA is still positive, indicating the long-term trend is still positive.
Crude oil finally moved through key resistance (a) and printed a buy signal on the MACD (b). Also notice the EMAs are still positive with all moving higher and the shorter above the longer.
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The Bonddad Economic History Project
At the beginning of 2012, I decided to start looking at the actual, statistical history of the US economy starting in 1950. The reason is simple: to find out what really happened. So, when you see title of a post that begins with a year such as 1957, followed by "employment" or "Fed policy: you know what it's for. You can also access the information by typing in BE for Bonddad econ and a year to find information on a particular year.
Here is a link to pages that contain links to all the posts on the years listed.