In my last daily update on Tuesday, I mentioned how
volatile the market can get on days of the FOMC
And yesterday certainly did not disappoint in that
Right at 2:00 EST, the S & P 500 dropped to a low
of 1,993.29 and proceeded to move to 2,010.74
in about an hour.
This was a 17.45 point move in an hour.
After topping at 2,010.74, it then dropped back down
to a low of 1,999.79. in a half hour.
So, in an hour and one half, the market moved up 17.45
and down 10.95.
This is the type of action that does nothing but
cause great frustration for short term traders.
I also mentioned Tuesday that when a key level in
the market is hit, it tends to pull back before
making another run.
That key level was 2,000.
And today the S & P 500 is back above it.
So, after all the discussion by the pundits that
the market should correct and head down …
not only has the market reversed to the upside,
but it has made a new high!
The Fed has made it clear that they will not
raise interest rates until 2015.
The market does not seem to believe that.
However, the TLT is now at a key inflection
point. That price is 112.50.
If that price holds, I fully expect the TLT to
head higher, sending rates back down.
Time will tell if I am right.