EB Daily Market Report

Dear Members.

In my email yesterday I pointed out that it is not uncommon for the market to look completely different the day after a Fed rate decision and we are certainly seeing that today with all of the major indexes substantially higher. 

The move higher today includes record levels on both the S&P and the Dow while the NASDAQ continues to lag. And now the bulls are hoping to extend gains even further.

The S&P got as high as 5733 today so that is now the new level of resistance. The next logical target would be 5750. To the downside, today's low of 5685 will be the first level of price support with the first level of technical support being the 20 day, currently at 5577.

That old saying, "don't fight the Fed" is certainly appropriate today. The question becomes, how much higher can the market go before traders consider taking profits? And will Friday's triple witching options expiration, now showing an even greater call to put imbalance, come into play at all? We'll find out soon enough. In the meantime let's watch and see how the rest of the day develops and revisit tomorrow.

At your service,

John Hopkins