What’s inside:
- The S&P 500 finds a direction after days of chop
- The Nasdaq blasts to new highs, S&P 500 new highs likely around the bend
- Key support and resistance noted, nothing substantial on the US data docket
Yesterday’s FOMC meeting brought a good level of volatility, ending with a skew to the upside as the S&P 500 rallied over 20 handles from prior to the Fed’s release. The S&P had been bottled up in the days leading up to the event, leaving traders without any good directional indications – one day looking like higher, next lower, next higher, etc.
The up-move is seeing some good follow-through thus far today, even taking the S&P above the top-end of resistance we had chalked between 2156 and 2163. Old resistance is now eyed as support on any decline from here. A daily close above this zone is viewed of importance now that we are trading north of it.
The shot higher yesterday pushed the Nasdaq 100 to a new record high, and it now looks as though the S&P 500 will follow suit. We are only about 23 handles or so at this time from achieving a new high, it’s well within reach.
There is minor resistance in the form of an upper parallel in th e mid-2170s, but from there nothing visible until the 2190/94 vicinity.
Support comes in by way of the 2156/63 area discussed, and depending on timing of any decline, the lower parallel rising off the 9/14 low.
There isn’t anything substantial on the US data docket for today or tomorrow. Next week will bring a couple of key data points with Consumer Confidence on Tuesday and Durable Goods Orders on Wednesday.
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---Written by Paul Robinson, Market Analyst
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