Commentary and Performance

Today’s trading was most definitely data dependent and this one was solely dependent upon the Federal Reserve’s latest announcement to leave interest rates unchanged. The SP- 500 made a new 1-month high and closed @ 2090.35 (+24.46 / +1.18%). The Nasdaq-100 also hit a new 1-month high and finished @ 4678.58 (+39.35 / +0.85%). Stealing the show was a canary in the coal mine, the Rusell-2000 small cap index, which charged to a new 29-day new high and crossed above its 22 and 55 day moving averages to close  @ 1178.72 (+33.43 / +2.92%).

The VIX declined @ 14.43 (-1.10 / -7.13%).

Treasury rates continued their ascent with the 10-Yr @ 20.92 (+0.64 / +3.16%) and the 30-Yr @ 28.63 (+0.12 / +0.42%).

The US Dollar Index closed @ 97.64 (+0.72 / +0.74%).

Gold closed @ 1155.70 (-11.30 / -0.97%). WTI Crude Oil reversed its downtrend to close @ 46.17 (+2.78 / +6.41%).

The Dow Jones Real Estate Index continued its consolidation  @ 297.77 (+1.11 / +0.37%). The Dow Jones Home Construction Index regained support at its 22-day moving average and ended @ 588.00 (+7.97 / +1.37%).

Daily Chart Analysis

Okay… We are fast approaching a key resistance area which approximately converges with the bottom support line of the previous uptrend. Yes, we are still overextended but momentum is strong as evidenced by the bullish crossing of the 22-day moving average above the 55-day moving average. The contrarian in me still anticipates a temporary pullback, at minimum. However, if we clear 2100, then look for the SP-500 to challenge the previous tops @ 2130-2135. Anything above that takes us further into new high territory and opens up a whole new can of “whip-azz” for the bears!

Market Breadth

• Advancers (2595) vs. Decliners (329).
• New 5-day highs (1178) vs. New 5-day lows (550)
• New 52-week highs (265) vs. new 52-week lows (180)
• Bullish reversals (574) vs. Bearish reversals (105)

Volume Radar Alerts

Stock prices increasing on high volume

• Starwood Hotels & Resorts Worldwide Inc (HOT) @ 79.50 (+6.27%) on 458% volume surge
• Cabela Inc (CAB) @ 39.26 (+17.47%) on 439% volume surge
• Chicago Bridge & Iron NV (CBI) @ 46.14 (+15.14%) on 395% volume surge
• Watsco Inc (WSO) @ 119.49 (+2.27%) on 323% volume surge
• Vantiv Inc (VNTV) @ 50.92 (+8.36%) on 315% volume surge

Stock prices declining on high volume

• Akamai Technologies Inc (AKAM) @ 62.91 (-16.73%) on 1072% volume surge
• Rite Aid Corp (RAD) @ 8.06 (-7.04%) on 854% volume surge
• Hyatt Hotels Corp (H) @ 49.63 (-1.82%) on 791% volume surge
• Intercept Pharmaceuticals (ICPT) @ 164.13 (-2.09) on 551% volume surge
• Wright Express Corp (WEX) @ 84.66 (-6.05%) on 494% volume surge

Market Moving Events

Bullish

• Central Banks / Monetary Policy / USA: The latest FOMC announcement left US interest rates unchanged @ 0.25% and provided a dovish bias as the Fed sees job gains slowing vs. solid gains while the unemployment rate is steady instead of declining. More importantly, inflation continues to remain below its target rate.
• Economy / Trade Balance / USA: The International Trade Balance  improved to -$58.6bn vs. previous @ -$67.2bn. Exports were up 3.1% while Imports declined -2.5%.
• Commodities / Energy: The EIA report for the week of October-23-2015 indicated that Crude Oil Inventories continued to increase @ 3.37bn bbl vs. estimates @ 3.41bn and previous @ 8.0bn. Refineries operated @ 87.6% capacity vs. 90% the previous week. However, the report hints of positive news as year-over-year demand indicators for gasoline were up 3.4% and and distillates were up 10.0%.
• Positive Earnings or Revenues: Apple Inc. (AAPL)

Bearish

• N/A

Neutral

• N/A