Are Bullish Breakouts Holding?
Chris Ciovacco | Feb 26, 2015 12:49AM ET
The Federal Reserve hopes market participants have come to accept a rate hike is on the way, allowing the central bank to avoid another taper-tantrum type event. From The Wall Street Journal :
h3 So Far, So Good/h3According to Janet Yellen, If the economy continues to strengthen as the Fed anticipates and officials become more confident that low inflation will rise toward their 2% goal the central bank “will at some point begin considering an increase in the target range for the federal funds rate.” With that assessment, Ms. Yellen took an incremental step, shifting the central bank away from promises that interest rates will stay low and toward a discussion of when and how fast they will move up.
Last week, the broad NYSE Composite Stocks Index finally posted a new high after failing to do so for over six months. In the wake of Yellen’s “a rate hike could be coming” remarks, the market is holding last week’s gains (see chart below).
This week’s stock market video covers the NYSE new high in more detail along with numerous other bullish developments.
Since noting there was a fine line between patience and risk management on January 15 , the S&P 500 has gained over 120 points. The weight of the evidence, as tracked by our market model, has shown incremental improvement in recent weeks, allowing us to remain patient with stock-related positions. The bearish case will regain some traction if the S&P 500 closes below 2090 this week. As always, the market will guide us if we are willing to listen with a flexible and open mind.
/h3
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.