Stocks push higher again on the Fed

  • The key focus Wednesday was on the Federal Open Market Committee Meeting and as expected a third rate cut for 2019 was delivered by the Fed.
  • Although the Federal Reserve did indicate that the “mid-cycle adjustment” was likely over and they were on pause, markets reacted as if the Fed were dovish, with US Bonds higher in price (lower in yield), stocks rallying and the US Dollar weaker across the board.
  • The comments on the ongoing trade negotiations from both the US and China remain upbeat, and alongside the positive stock reaction to the Fed saw the S&P 500 hit another new all-time high on Wednesday.

S&P 500 E-Mini hits another new all-time high

A Wednesday dip and a rebound for a bullish outside pattern from just below our 3027.75 support off of new 3023.5 support to another new all-time high above 3050.0 resistance, keeping the bias higher for Thursday.

The mid-October surge above 2965.5 set an intermediate-term bull trend.

For Today:

  • We see an upside bias for 3055.0; break here aims for 3063.5, maybe even 3075/76.
  • But below 3037/35 opens risk down to 3023.5, maybe even 3016.75.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 3095.5, 3125.75 and 3250.0.

  • What Changes This? Below 2953.75 shifts the intermediate-term outlook back to neutral; through 2881.75 is needed for an intermediate-term bear theme.

4 Hour S&P 500 E-Mini Future Chart

S&P 500 Chart 2019-10-31

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

Comments on this analysis

Your email address will not be published. Required fields are marked *

Latest Related News

Trade News Still Relevant? – Market Turning Points

Market Overview Until Thursday’s close, the price action looked toppy!  For the past week, prices had traded in a narrow range and negative divergence had appeared at the daily and hourly level, and the fear & greed index has been at “extreme greed” for over a week.  Furthermore, we are in a time frame when cycles are peaking, and the maximum P&F projection for this… Continued

Equities stay solid through Trump speech

A much-hyped speech from US President Trump on the US-China trade talks Tuesday had muted impact as the major US equity averages probed higher hitting new all-time highs ahead of the speech.There was nothing particularly new from President Trump highlighting a phase one deal was close, but also stating that if an agreement was not reached there would be further tariffs.The US markets shrugged this… Continued

Cycles Peaking – Market Turning Points

Market Overview The best guesstimate is that SPX is in the process of creating an intermediate top, probably the B-wave of wave-4 of the bull market.  The only thing that would disprove this view is if market strength continued with IWM beginning to take the lead.  Since this is obviously not happening, we’ll have to stay with the current premise.  I stated in the previous… Continued

Intermediate Topping Process Continues

Market Overview Last week SPX and NDX made a new all-time high.  DJIA failed to do so by a small margin.  NYA (the broadest index) remained well below its January 2018 high.  And, of course, IWM clearly remains in a 14-month downtrend.  It’s obvious that the stock market, as a whole, is a mixed bag.  If it were trying to re-establish it’s long-term uptrend, IWM… Continued

American Employment Growth Justifies Fed Caution

Non-Farm Payrolls in October exceeded expectationsThe only concern is manufacturing which continues to struggleThe Fed seems justified in pausing on rates for nowThe declines durable goods orders and a build of excess capacity will need watching Non-Farm Payrolls in the U.S. is arguably the most important economic statistic in the world. It possesses the ability to move the U.S. Treasury and Wall Street equity markets… Continued

Forex Brokers in your location