Wednesday the markets were prepping for a 0.75 % move from the Fed and they got it. They got exactly what they asked for. Decision was unanimous, as no one voted for a 1.00% increase. Solidarity on the move was 100% so everyone is happy.
Looking at the 60-minute chart of the Nasdaq 100 ETF, QQQ, it was a non event.
The SPY had a similar response.
Gold is trying to find a heartbeat after being buried in a sea-of-red move.
Bond yields didn’t move.
The one area I continue to watch is the energy space. Oil is trying to move higher.
Lastly the US dollar shown here intraday on the UUP chart.
As we stare into the food and energy crisis exploding around us, it is almost surreal that the markets are consoled by the move. Bonds are comfortable with the change and the currency is as well. After analyzing the initial reaction and the various investable assets lack of response, we’ll need to see what tomorrow brings. So far it was a non event.
Greg Schnell, CMT, MFTA