BRIEF COMMENT ON THE FED'S INTEREST RATE HIKE (4:30 pm EST)
Today the Fed announced another interest rate hike and also signaled that there will be four hikes this year rather than the previously expected three. Although the rate hike was expected, equity markets reacted negatively to these announcements near the end of the day with the DOW dropping 119 points after 3:00 pm. We will see over the next few days if this will be just a temporary dip or if spooked markets decide to sell off. A dip down to around 25,000 in the DOW may be a good spot to go long for a potential rally into next week's reversal zone. If the DOW breaks significantly lower than that, we could see a bottom in the reversal zone instead of a top.
Today the Fed announced another interest rate hike and also signaled that there will be four hikes this year rather than the previously expected three. Although the rate hike was expected, equity markets reacted negatively to these announcements near the end of the day with the DOW dropping 119 points after 3:00 pm. We will see over the next few days if this will be just a temporary dip or if spooked markets decide to sell off. A dip down to around 25,000 in the DOW may be a good spot to go long for a potential rally into next week's reversal zone. If the DOW breaks significantly lower than that, we could see a bottom in the reversal zone instead of a top.
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