Markets rallied handsomely Wednesday after the Fed moved and raised interest rates for the first time since 2006. The S&P 500 enjoyed its first 3 day winning streak in 2 months and has now cut well more than half into last weeks 3.8% decline, up 3% thus far with 2 sessions to go. It recaptured both its 50 and 200 day SMAs in the process. The chart now looks like a double bottom pattern is in play with a trigger above 2105 as it recorded a golden cross today. The Nasdaq rose 1.5% even with AAPL lagging and select semiconductor stocks not acting as robustly as one would think. Many will be waiting for a pullback, but remember bull markets rarely give you the chance to get back in and one has to think to complicate that even more will be managers looking to chase performance into year end. The VIX slipped back below the round 20 number, an area that had been stern resistance, of course leaving out the August explosion, in July and November. With financials in focus with the Fed today there was an acquisition in the space today with GPN buying HPY. There seems to be some sort of “normalcy” coming back where the acquirer loses ground and the acquiree gains. GPN slumped 8% while HPY advanced 12%. This comes on the heels of NWL falling 7% Monday after it was confirmed it was purchasing JAH. Consumer plays acted well and a best of breed name we profiled in Tuesday Game Plan is acting very well. Today it took out an ascending triangle pattern and now looks honed in on a cup base trigger of 91.78. A breakout would be an all time high.
This article requires a Chartsmarter membership. Please click here to join.