Markets did the exact opposite of Tuesday action with the major averages not spending anytime in the red and went out on highs for the session after the expected Fed rate hike. The Russell 2000 was the best actor as it reclaimed its 50 day SMA forcefully and now lets see if it can maintain that stance for the next several days. It added 1.6% and the S&P 500 rose .85% and the Nasdaq by .75%. The rally was very broad and it was only the financials which were the lone loser of the major S&P sectors, with a sell the news event taking place. Bears could hang their hats on the leadership displayed today as energy and utilities were clear rules with both the XLE and XLU rising by 2.2 and 1.7% respectively. Looking at individual groups there seems to be a very unusual correlation, albeit very small sample with the airlines and crude trading together. Today the airlines as a whole rallied 3% as oil recorded its first winning session in 8 tries. Commodities galloped ahead as the rate hike has some feeling the economy is on the mend. Peeking around the globe it was no surprise to see the resource rich ETFs basking in the sun. Brazil, Mexico, Russia and Australia all moved higher by 4.1, 3.2, 3.1 and 3.1% via the EWZ, EWW, RSX and the EWA. Below is the chart of APA and how it was presented in our Tuesday 3/14 Game Plan. It is acting well around the very round 50 number.
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