Market Recap For 9/17/2015

The long awaited rate hike decision from the FED finally came and gone, and nothing has changed. The decision is to leave the rate at its current level. Reasons cited by the FOMC not to raise rate included the China slow down, the strong US dollar and low inflation due to low energy prices. So the guessing game continues as the talking heads still guessing there could be a rate hike before the end of this year. But based on timing and the reasons cited by the committee, the likely scenario is there won’t be a rate hike in 2015, and the next likely time frame for a rate hike is in March, 2016.

Here’s what the market did after the FOMC announcement and Chairperson Yellen’s press conference. The SP500 fluctuated soon after the decision was announced, which is typical for the market to digest the news. After the initial choppy action, the market proceeded to make a new high for the day before it starts to retrace. In the last hour of trading, the market pulled back and the SP500 retested the level near the August 28, 2015 close. It closed today at 1990.20 with a loss of -5.11 or -0.26%. Today’s reversal after the post FOMC announcement pop could generate additional selling and cause the SP500 to retest the 12/16/14 close at 1972.56. The 2040.24 level continues to be the near term potential resistance. If the 1972.56 short term support cannot hold, then the near term support level at 1948.04 could be tested.

SPX - intraday

(click on the chart to enlarge)


SPX - daily




The SPY could dip down to retest the 197.91 and possibly test the 195.45. The near term potential resistance level continues to be at 204.40 and the near term potential support remains to be at 195.45.

SPY - intraday




The Nasdaq 100 moved into the July 10, 2015 price gap after the FOMC announcement. Similar to the SP500, it also has retreated from the high of the day and closed at 4384.96 with a gain of 1.29 or 0.03%. The near term support remains at 4278.14 and the near term resistance at 4562.33.

NDX - intraday




The Russell 2000 finished the session with a gain of 5.49 or 0.47% by closing at 1180.69. It could dip down to retest the pivot high at 1164.89 before resuming toward the potential resistance level at 1200.74. If it fails to hold above the 1164.69 level, then the potential support level at 1154.71 could be tested.

RUT - intraday




Tomorrow is quadruple witching Friday, one should not be surprised to see additional volatility as the market try to reposition to the rate hike (lack of it) decision from the FOMC.