The Fed surprised the market’s with announcement of “no taper”, leaving bond buying steady at $85B per month. Markets reacted positively as Major Indexes broke out to new highs. So for now, the “crack-pipe” has been re-lit and everyone can take a deep “toke” to make them feel good again. The reality is that the Fed does not view the recovery as robust as they had anticipated…Perhaps the Fed should interview main street Americans rather than consult elite corporate executives…But that’s another story…For now “let the good times roll” on Wall Street.
Having broke out to new highs there is no real reference level above current price, so higher targets are “estimates only” based upon historical ranges.
Prior Day High (PDH) 1723.25 is initial marker…Penetration and Hold this level suggests further upside 1728 – 1732 zone. Initial support comes in 1716 – 18 zone…Violation of this zone suggests corrective price action targeting 1708 – 16 zone (wide zone).
Remember: “Price Validates Levels”…”Levels DO NOT Validate Price”
Stay disciplined my friends!
I am disciplined. I behave in a way to reach my goals. I do what I intend to do. I have the intent to win through right actions. I will be patient for patterns to emerge and mature. I am decisive. I decide easily and act promptly. I act in the right way and right on time. When there is nothing to be done, I will wait.