Today the conclusion of a highly anticipated FED two day meeting ended with a key change.... Patience. For those who weren't tuned into Bloomberg Radio today, they opened up perfectly with a Guns N Roses song: Patience.
Said, woman, take it slow
It'll work itself out fine
All we need is just a little patience
The FED will be patient about raising interest rates. Oddly enough investors did the exact opposite, immediately sending a market sitting on big gains up even biggerer... While the FED was telling everyone to be patient on rates, investors were buying up stocks in a rather impatient fashion. We've seen this action all too often recently, previously these rips were sold off. Today the gains held.
Patient? The previous two trading sessions saw rather impatient and indiscriminate selling, today we saw indiscriminate buying. The market was oversold and with crude oil rebounding the FED was the excuse the market needed to relieve those oversold conditions.
The key today was the close at session highs. We haven't seen that in a while. Many stocks blasted through resistance levels which will act as support in the days ahead. Seasonality tells us that the market usually trends higher into the end of the year.
I see many calling today's move as the bottom and that stocks will head higher into years end. I would be looking at this S&P futures chart, price came right up to resistance at the close. 3 straight sessions have seen stocks stop at that level. While today was the best trading day for the bulls since 2013, if S&P 500 futures can't break above current levels, those gains, like all the previous gains this week, could dissipate rather swiftly.
