The S&P 500 managed to finish the day higher by roughly 30 basis points to finish at 3,141. The index got a bump following the FOMC rate decision, which was a no change in rates, as expected. So why did the market rise? Primarily, because the Fed has made it pretty clear that the bar for cutting rates is lower than the bar for raising rates. The Fed is going to be more inclined to cut rates at the first sign of weakness and not increase rates should inflation and the economy strengthen.
If that isn’t a bullish scenario for stocks, then I’m not sure what is. I talked about some this more in a post-Fed commentary, going through the dot plot and the story that dots told – Post Fed Thoughts
The interesting thing is that the S&P 500 is starting to show some resemblance of a pennant formation, a bullish continuation pattern. It does suggest that the market is likely to move higher tomorrow, and potentially move on to new highs.
Skyworks (NASDAQ:SWKS)
Skyworks (NASDAQ:SWKS) had a big day along with the entire semiconductor sector. The stock is now reaching overbought levels and is near resistance. This is likely a perfect place of the stock to consolidate, especially if it is going to continue higher.
Boeing (NYSE:BA)
Boeing (NYSE:BA) fell sharply today but recovered all of the losses by days end. But it appears to be more of a gap-fill then anything. This one may still have further to fall.
Acadia (NASDAQ:ACAD)
Acadia continues to fall, and it is filling a gap. Yesterday I was not careful enough when evaluating how much more it needed to fall for the gap to be closed if we play this by the book it needs to fall to $44.30.
Square (NYSE:SQ)
Square (NYSE:SQ) is sitting on support at $65.50, and I think it can fall to around $62.
Freeport (NYSE:FCX)
Freeport had a strong day following surging copper prices higher, with $13.20 acting as the next major resistance level.