Stocks push higher again on the Fed

Intermediate
  • 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

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