By Scott Martindale
President, Sabrient Systems LLC
On Wednesday afternoon, the Fed came through to fulfill what was widely expected – no change to the discount rate just yet. But it did pump up its hawkish language a bit. The FOMC never wants to surprise the markets, so given that it had not telegraphed a rate hike, it simply wasn’t going to happen. Looking forward, however, given that the committee sees the balance of economic risks at an equilibrium, a hike in December looks like a slam-dunk unless something changes dramatically. Beyond that, they are essentially telegraphing two rate hikes next year, as well. The upshot is that investors were happy and dutifully responded with a strong rally across many asset classes to finish off the day.
In this periodic update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable ETF trading ideas.
Read more about Sector Detector: Volatility returns as anticipation builds about Fed actions and elections