MultiMarket Big Reaction to Fed Announcement

Jun 18, 2015: 10:58 AM CST

Yesterday’s Fed Announcement that interest rates will likely remain unchanged through most – if not all – of 2015 sent markets moving in expected directions.

A “Risk On” environment altered the intermarket landscape as was logical from the news.

Let’s chart the quad-market grid and note these knee-jerk reactions:

With the Fed remaining on hold, extremely accommodate (in terms of monetary policy), and NOT raising interest rates any time soon, markets enjoyed a wave of rapid “Risk-On” Money Flow.

Stocks burst higher as did Gold and Oil.

The US Dollar was the sacrificial market that boosted these bullish commodity and stock plays.

Specifically:

  • The @ES Futures so far boosted 30 points higher from 2,080 to 2,115;
  • Gold Futures reversed up off support at $1,175 to shatter resistance into the current $1,200 target
  • Oil – after a volatile session – spiked up away from $59.00 toward the current $61.00
  • The Dollar finally broke support at $95.00 to collapse under $94 within a few hours.

Speaking of hours, here’s a slightly broader perspective of the trend and recent reaction:

  • Stocks continue to trade within a bullish-leaning sideways range;
  • Gold rallied up off a base of support into a prior high ($1,200);
  • Oil similarly trades within a bullish-leaning sideways range;
  • The Dollar collapsed to the prior low from May near $93.50;

With all markets at or near key target levels, adjust and trade the reaction away from these target spots.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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3 Comments

3 Responses to “MultiMarket Big Reaction to Fed Announcement”

  1. Up Again We Go Post-Fed Market Update and Stock Scan June 18 | Afraid to Trade.com Blog Says:

    […] this morning’s “Intermarket Money Flow Grid after the Fed” update for more […]

  2. June 19 Retracement Market Update and Big Trending Stock Scan | Afraid to Trade.com Blog Says:

    […] yesterday morning’s “Intermarket Money Flow Grid after the Fed” update for more […]

  3. Romi Says:

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