BRIEF COMMENT ON THE BROAD STOCK MARKET (4:30 pm EDST)
Today a nervous Wall Street waited with "bated breath" for the detailed minutes of the recent FOMC meeting fearing they would find more aggressive hawkish rhetoric in those minutes. They did not. The minutes simply reflected what the Fed suggested in their original statement and press conference, i.e. most likely a few more half point increases in interest rates. After early day jitters, the broad stock market breathed a sigh of relief and closed up for the day. But several more half point rate hikes is still hawkish, so it is questionable if this market can maintain its confidence over the next several days and into next week.
We enter our new strong general reversal zone (May 26 - June 30) tomorrow. The DOW and S&P 500 appear to be rising into it, but the NASDAQ may be falling. We will watch carefully for significant lows or highs in these indices into next week. We may get both. We are still on the sidelines of this market.
Today a nervous Wall Street waited with "bated breath" for the detailed minutes of the recent FOMC meeting fearing they would find more aggressive hawkish rhetoric in those minutes. They did not. The minutes simply reflected what the Fed suggested in their original statement and press conference, i.e. most likely a few more half point increases in interest rates. After early day jitters, the broad stock market breathed a sigh of relief and closed up for the day. But several more half point rate hikes is still hawkish, so it is questionable if this market can maintain its confidence over the next several days and into next week.
We enter our new strong general reversal zone (May 26 - June 30) tomorrow. The DOW and S&P 500 appear to be rising into it, but the NASDAQ may be falling. We will watch carefully for significant lows or highs in these indices into next week. We may get both. We are still on the sidelines of this market.
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