End of Day Update:
Stocks gave back some of the Fed pop Thursday, but remain well above prior resistance at 2,080. We cannot read too much into today’s pullback because it is healthy to give back a little of Wednesday’s huge move. The encouraging thing is the market traded sideways near 2,090 for most of the day and only showed modest profit taking. Holding this level through Friday’s quad-witching means owners and buyers believe in this market and we will likely retest all-time highs near 2,02. But if we cannot maintain these gains, watch out below because that tells us this pop exhausted all available demand.
Jani Ziedins (pronounced Ya-nee) is a full-time investor and financial analyst that has successfully traded stocks and options for nearly three decades. He has an undergraduate engineering degree from the Colorado School of Mines and two graduate business degrees from the University of Colorado Denver. His prior professional experience includes engineering at Fortune 500 companies, small business consulting, and managing investment real estate. He is now fortunate enough to trade full-time from home, affording him the luxury of spending extra time with his wife and two children.