Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Squid Game Stock Market 2025 - 5th Jan 25
Stock Market Bubble Drivers, Crypto Exit Strategy During Musk Presidency - 27th Dec 24
Gold Stocks’ Remain Exceptionally Weak Even as Stocks Rise - 27th Dec 24
Gold’s Remarkable Year - 27th Dec 24
Stock Market Rip the Face Off the Bears Rally! - 22nd Dec 24
STOP LOSSES - 22nd Dec 24
Fed Tests Gold Price Upleg - 22nd Dec 24
Stock Market Sentiment Speaks: Why Do We Rely On News - 22nd Dec 24
Never Buy an IPO - 22nd Dec 24
THEY DON'T RING THE BELL AT THE CRPTO MARKET TOP! - 20th Dec 24
CEREBUS IPO NVIDIA KILLER? - 18th Dec 24
Nvidia Stock 5X to 30X - 18th Dec 24
LRCX Stock Split - 18th Dec 24
Stock Market Expected Trend Forecast - 18th Dec 24
Silver’s Evolving Market: Bright Prospects and Lingering Challenges - 18th Dec 24
Extreme Levels of Work-for-Gold Ratio - 18th Dec 24
Tesla $460, Bitcoin $107k, S&P 6080 - The Pump Continues! - 16th Dec 24
Stock Market Risk to the Upside! S&P 7000 Forecast 2025 - 15th Dec 24
Stock Market 2025 Mid Decade Year - 15th Dec 24
Sheffield Christmas Market 2024 Is a Building Site - 15th Dec 24
Got Copper or Gold Miners? Watch Out - 15th Dec 24
Republican vs Democrat Presidents and the Stock Market - 13th Dec 24
Stock Market Up 8 Out of First 9 months - 13th Dec 24
What Does a Strong Sept Mean for the Stock Market? - 13th Dec 24
Is Trump the Most Pro-Stock Market President Ever? - 13th Dec 24
Interest Rates, Unemployment and the SPX - 13th Dec 24
Fed Balance Sheet Continues To Decline - 13th Dec 24
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Indices Now Short-Term Overbought After Post-FOMC Rally

Stock-Markets / Stock Index Trading Mar 18, 2009 - 09:05 PM GMT

By: Harry_Boxer

Stock-Markets It was a very interesting market today on FOMC announcement day. The indices backed and filled in the morning, were lower for most of the morning session, rallied by mid-day before the FOMC announcement, and then exploded after the FOMC announced the purchase of hundreds of billions dollars worth of treasuries. After a spike up that took the NDX up to 1225 and the SPX up to 803, at key overhead resistance on the SPX and above it on the NDX, the indices then had a sharp pullback that brought them back down by 30 NDX points and about 18 SPX points. In the last 15-20 minutes they bounced again and took back some of the late losses.


Net on the day the Dow closed up 90.88 to 7486.58, the S&P 500 16.23 at 794.35, and the Nasdaq 100 up 14.79 to 1206.96. The Philadelphia Semiconductor Index (SOXX) up 7.61 at 228.52.

The technicals were very positive. Advance-declines were about 4 1/2 to 1 positive on New York and about 2 1/2 to 1 positive on Nasdaq. Up/down volume was the story, with 1.85 billion traded to the upside on New York and only 213 million on the downside, a 9 to 1 positive ratio. Nasdaq also had a 9 to 1 positive volume ratio, with 2 1/2 billion up and 267 million down on heavy volume of more than 2 3/4 billion.

TheTechTrader.com board was very mixed, but generally most stocks managed to get back into the plus column. Financials were the leaders today, as Wells Fargo (WFC) exploded up 2.56 to 17.22. JP Morgan (JPM) was up 1.97 to 27.11, and Bank of America (BAC) up 1.40 to 7.67. Hartford Financial Services (HIG) at 8.86 was up 1.73 on 51 million.

As a result, the Direxion Financial Bull 3x Shares (FAS) was up 1.55 to 7.16 on 377 million, the heaviest volume in its history. Among other ETFs, the Direxion Large Cap Bull 3X Shares (BGU) jumped 1.52 to 23.15, and the iShares MSCI Brazil Index ETF (EWZ) was up 93 cents to 38.22.

Portfolio position DG FastChannel (DGIT) was up 82 cents to 17.02. General Electric (GE) advanced another 32 cents to 10.32. Rambus (RMBS) was up 80 cents to 10.60, a clear breakout there. Sequenom (SQNM), another portfolio position, added 58 cents to 15.60, and portfolio positions TeleCommunication Systems (TSYS) at 9.24 was up 41 cents and Akamai (AKAM) gained 62 cents to 18.92.

On the downside, the Direxion Financial Bear 3x Shares (FAZ) got slammed for 9.24 to close at 26.35. That's down from 115.50 in just 8 sessions. The Direxion Large Cap Bear 3X Shares (BGZ) lost 5.15 to 67.23, and the UltraShort Real Estate ProShares (SRS) at 55.47 was down 5.85. American Italian Pasta (AIPC) at 30.59 was down 1.56.

Stepping back and reviewing the hourly chart patterns, the indices made a significant move today and extended the rally after yesterday's strong session and nice follow-up. But we are extremely extended and very overbought on the oscillators (NYSE McClellan oscillator +358!!) and up against key overhead resistance on the SPX and just above it on the NDX.

I expect that the market could pullback, retest or consolidate over the next 2-3 days based on the extreme overbought condition of the market.

Good Trading!

Harry

For more of Harry Boxer, sign up for a FREE 15-Day Trial to his Real-Time Technical Trading Diary. Or sign up for a Free 30-Day Trial to his Top Charts of the Week service.

(c) 2009 AdviceTrade, Inc. All rights reserved. Distributed only by written permission of AdviceTrade and The Technical Trader at info@advicetrade.com . In using any portion of Harry Boxer's content, you agree to the terms and conditions governing the use of the service as described in our disclaimer at http://www.thetechtrader.com

Mr. Boxer's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Boxer's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

Harry Boxer Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in