Stocks firm after the Fed Meeting (S&P500)

Intermediate
  • The Fed cut rates as many forecasters had expected on Wednesday 18th September by 0.25%.
  • However, they also signalled that they are now likely on hold, with another rate cut probably unlikely in 2019.
  • Global equity averages initially turned lower, but then US markets staged strong rebounds into the close on Wednesday, though have drifted lower during Asian trading hours.
  • Here we focus on the US, broad benchmark average, the S&P 500, which retains both a short- and intermediate-term bull bias.

S&P 500 Bull tone

An erratic session Wednesday through the Fed Meeting, with a selloff and then a strong rebound from just below 2981.25 support, from 2978.5), to then push above 3006.5 resistance for a modestly bullish outside daily pattern, to keep risks higher for Thursday.

The late August push above 2978.5 set an intermediate-term bull theme.

For Today:

  • We see an upside bias for 3011.0; break here aims for 3023.75, then the record high at 3029.5, maybe and then towards 3038.5.
  • But below 2988/87 aims for 2978.5 and then 2972.0, maybe 2957.25.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 3000.

  • Higher targets would be 3029.5 and 3050.0.
  • What Changes This? Below 2851.75 shifts the intermediate-term outlook back to neutral; through 2810.25 is needed for an intermediate-term bear theme.

4 Hour S&P 500 E-Mini Future Chart

S&P 500

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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