Wednesday, September 21, 2011

FOMC Meeting

Today was all about the FOMC-meeting and the Fed-announcement afterwards. So before that, not much happening and it was a rather choppy session.
The Fed said it would launch a new $400 billion program, purchasing Treasury securities with remaining maturities of 6 years to 30 years and selling an equal amount of Treasury securities with remaining maturities of 3 years or less. The interest rates remain unchanged.

Other news worth mentioning; Moody's downgraded Bank of America and Wells Fargo.

Tech was still leading the market (read: down less) while the Russell2000 was the biggest loser among the major indices. Gold and silver only slightly down, compared with equities. Oil down big, almost 4%.
Another big loser was the Euro, rallying pre-Fed-announcement, down 200 pips afterwards!

Indices closed at the lows of the day, and expecially financials got hit hard, not surprising with today's downgrades. On the daily charts we see the Dow and S&P closing at the bottom trendline of the presumed bearflag and the Russell2000 even closing under the flag. Outperformer Nasdaq still in the middle of the flag, but this divergence with the other indices probably won't last for much longer.

Charts of DIA and QQQ:

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