Feds Hold Rates Steady...
The Dow closed marginally lower by 10.88 points today on profit taking following the FOMC Announcement.
The FOMC, short for Federal Open Market Committee, is when the members of the Federal Reserve headed by Bernanke, sit together to discuss monetary policy every month. It is a one day meeting that started on Tuesday and announced their decision today. Of course their decision was nothing out of the ordinary as they are expected to hold rates steady for a significantly longer period of time. Which could be why we saw that profit taking following the announcement. Market was up on great housing starts before the Fed announcement.
So what started as a pretty optimistic day, ended as a sideways day with the Dow still inside that congested short term neutral channel. As I mentioned yesterday, with so much volatility going on this week, I don't think we will see a decisive breakout this week.
For now, the Dow remains in short term neutral trend within an intermediate and long term bull trend.
The FOMC, short for Federal Open Market Committee, is when the members of the Federal Reserve headed by Bernanke, sit together to discuss monetary policy every month. It is a one day meeting that started on Tuesday and announced their decision today. Of course their decision was nothing out of the ordinary as they are expected to hold rates steady for a significantly longer period of time. Which could be why we saw that profit taking following the announcement. Market was up on great housing starts before the Fed announcement.
So what started as a pretty optimistic day, ended as a sideways day with the Dow still inside that congested short term neutral channel. As I mentioned yesterday, with so much volatility going on this week, I don't think we will see a decisive breakout this week.
For now, the Dow remains in short term neutral trend within an intermediate and long term bull trend.
posted by Jason Ng at 6:06 PM
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