FOMC statement and the Stock Market
Stock-Markets / Stock Markets 2016 Apr 27, 2016 - 05:33 PM GMTThe algos have taken over after the FOMC release. ZeroHedge reports, “ The kneejerk - USD up, stocks down, bonds down - reaction has faded and with The Fed statement pitching its dovish tent back in domestic concerns while keeping a hawkish eye on global developments. The Long bond is back in the green but it appears machines are busier running oil stops higher and dumping gold.”
We want to be cautious with SPX until it crosses Short-term support at 2085.09. A move higher may change the Wave structure and delay the sell signal.
FOMC Statement Key Takeaways are: The best, and so far most concise assessment of the FOMC statement comes from Stone McCarthy which points out the following:
Key Take-Aways:
The April 27 statement downgraded economic activity, said it "slowed", but labor market conditions "improved further" and inflation still expected to rise toward 2% over the medium term.
Removed language that "global economic and financial developments continue to pose risks".
Kansas City Fed's Esther George dissented in favor of a rate hike.
TNX also wobbled this afternoon, but it appears that it has resolved to the downside.
Crude oil spiked higher. I will cover it in the mid-Week report.
Regards,
Tony
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