By Markus Heitkoetter
It’s usually quiet before a major item on the economic calendar like the FOMC Statement. But not today!
The major indices averaged a 1% gain across the board. With today’s 23 point gain the S&P closed at 1985.05 back withing striking distance of 2000. Not only is the S&P back near the 2000 mark, the S&P is just 27 points away from the all-time high close. What a difference a few weeks can make!!!
The DOW had another triple digit day, up 188 points. With today’s gain the DOW closed at 17005.75 and is back above the 17000 mark for the first time since the beginning of the month.
Small Caps and the Russell led the markets with an impressive 2.9% gain. While the rest of the major indices are still fighting for profits in the month of October, the RUSSELL is leading the way with a convincing 4.34% monthly gain.
October’s two day Fed Meeting kicked off today and will wrap up with tomorrow’s FOMC Statement and rate decision. Tomorrow the Fed is expected to announce the end of their bond buying program. Although the end of QE3 is historical, the real focus will be on the statement and any clues as to when and how the Fed will begin to raise rates.
It’s been quite a ride over the last few weeks. Will the Fed put an end to this rally by hinting at a sooner than expected interest rate hike?
Have you seen Yahoo’s (YHOO) latest run? Following better than expected earnings last week the stock has closed higher for the last 9 consecutive trading sessions.
Power Crossover Method traders had a Buy Signal to consider on 24 Oct 2014 at $42.89. After today’s 2.6% rally buyers are less than a dollar away from an Average Daily Range Profit Target at $46.62.