The market exploded higher following yesterday’s FOMC announcement at 2 PM ET. Below is a snapshot of where the S&P 500 and each of its ten sectors currently stand within their trading ranges entering today’s market open. As shown, all ten sectors have moved out of oversold territory, and seven of ten are back above their 50-day moving averages. Health Care, Financials and Consumer Discretionary are the three overbought sectors, with Health Care at the most extreme levels.
Below is a chart of the S&P 500 over the last six months. As you can see, yesterday’s big bounce off of the 50-day moving average left the index back above key resistance from last year’s highs (2,093). Let’s see if it can stay above there as we cool down post Fed.
While the S&P 500 has just bounced off of its 50-day, the Russell 2,000 smallcap index experienced a huge breakout higher yesterday. It looks like smallcaps may be ready to take a leadership role again after underperforming significantly throughout the entirety of 2014.
In last night’s Closer report sent to Bespoke Premium and Institutional clients, we covered yesterday’s FOMC announcement extensively. Sign up for a 5-day free trial to Bespoke Premium if you’d like to see the analysis. A Premium membership unlocks our full product suite! (Don’t miss our “End of Winter” discount button at the bottom of this post if you’re thinking about signing up.)