Yesterday the FOMC raise rates by 25 basis points increased their expectations for rate rises in 2022 to 7 from 3 in December. The US stocks rallied as shorts squeezed, and perhaps traders were encouraged by the Fed’s aggressiveness. They are now on par with the analysts. That is a thought at least.
So onto today, the snapshot of the market 11 minutes into the opening it is showing:
Dow industrial average -103.79 points or -0.3% at 33959.32
S&P index -11.04 points or -0.25% at 4346.81
NASDAQ index -49.13 points or -0.37% 13387.42
Russell 2000-2.54 points or -0.13% at 2028.17
Of interest at technically, is that in the S&P index, the price rise yesterday stalled just ahead of its falling 200 hour moving average currently at 4359.70. Back on March 3, the price also tested that 200 hour moving average only to find willing sellers against that level. Going back to February 9 of February 10, the pair briefly moved above the 200 hour moving average only to find sellers quickly thereafter.
If the prices is to go higher, getting above the 200 hour moving average is a major step from a technical perspective. Absent that and buyers could easily turn to sellers in force the price back down toward the 100 hour moving average currently at 4290.43 (blue line in the chart below).