The Closing Look
Stock Market Commentary:
As expected, the Federal Reserve raised rates by a quarter point and said they do not plan on raising rates until the data improves. The stock market rallied after the meeting and continues its three day bounce (after last week’s steep decline). Fed Chair Janet Yellen told the media in her post meeting press conference not to focus on the significance of the first hike and that policy remains accommodative. That’s her way of saying, Don’t worry, the easy money is here to stay. Yellen also told investors that “persistent changes” in global markets would need be consistent to through the Fed off track.
As expected, the Federal Reserve raised rates by a quarter point and said they do not plan on raising rates until the data improves. The stock market rallied after the meeting and continues its three day bounce (after last week’s steep decline). Fed Chair Janet Yellen told the media in her post meeting press conference not to focus on the significance of the first hike and that policy remains accommodative. That’s her way of saying, Don’t worry, the easy money is here to stay. Yellen also told investors that “persistent changes” in global markets would need be consistent to through the Fed off track.
Gary’s Thoughts: As market players, we could care less about what is said. We care about reactions. We had a good reaction. Keep in mind, this is an oversold really from last week’s ugly…and really don’t forget we are now in the end of year “window dressing!” We suspect some more upside back into resistance and hopefully, for the big cap indices, they get taken out. Most of market still lags badly.