Weekend Report – Fed Decisions
The week before the Fed decision had a good amount of action, so let's take a look at the week before the Fed Meeting and see if it gives us any clues about what we might expect next week. Hint Hint: Did you see the reaction in the XLF as the markets sold off?
XLF on May 31 - This is what I have been watching for weeks. That 50sma was capping the financials and they looked pretty bearish.
XLF Now - As mentioned Friday The XLF & BKX broke out Thursday and had follow through on Friday. BANKS have done well leading up to and after a Fed Mtg with a rate hike. Look at what happened before & after the DEC 2016 Rate Hike, which was also very much anticipated. Now we see that type of action again.
Now look at the NASDAQ - at 1:30 Eastern time, I posted this chart in the comments/ chat section and declared that 'so far the sell off was similar to many of the recent ones'. Maybe the 50sma would be a target down the road? Did it remain that way?
WHOA! It dropped all the way to the 34sma all in 1 day and then bounced. This is an area that supported price in the past. At one point it had erased over 2 weeks of gains in 1 afternoon!