The Gilmo Report

September 16, 2020

September 16, 2020 6:23 pm ET

The Fed issued their latest policy missive today, and as might have been predicted, did nothing. One wrinkle came in the form of an indication from the Fed that they expect to keep rates at 0% to 0.25% until at least 2024. The market reacted initially with a yawn, then started to rally, and by the time the Fed Chair had finished his press conference, the S&P 500 and NASDAQ Composite Indexes were in the red while the Dow barely clung to a 0.13% gain.

The NASDAQ Composite Index reversed at its 10-dma and 20-dema on lighter volume vs. yesterday. It remains in an eight-day bear flag since the 10% break off the peak that began eight days ago. The index is now set to test the 50-dma, and a breach of the line would have potentially bearish implications.

 

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