Wednesday’s Closing Look

Stocks closed mostly higher after Apple (AAPL) surged 6% and the Fed held rates steady. Overall, earnings are on track to grow 7% in Q4 2016 which means the earnings recession is over. The Fed held rates steady and said “Measures of consumer and business sentiment have improved of late.” This was led many people to believe the Fed may begin “normalizing” rates sooner rather than later. After the close, Facebook (FB) gapped up after reporting strong numbers.

Gary’s Thoughts:

Just letting you know we are starting to see a few too many failed breakouts. These are stocks that broke above range and then tucked their heads in like frightened turtles. Keep in mind, major indices failed breakouts but have not broke down as of yet. Most everything is sitting just above the all-important 50 day average and need to be watched. The next few days could be important.