The
Dow Jones Industrial Average (DJI)
soared to a near five-year peak today, following the Fed's widely
anticipated announcement of another round of quantitative easing.
"Can you say new highs across the board? Say what you want about
the Fed or a Fed-induced rally, but the reality is that we've been
seeing leadership from small-caps and housing lately, and that was
a big sign that the overall market was probably going to break
out," said Schaeffer's Senior Technical Strategist Ryan Detrick.
"When you couple the leadership from the right sectors with just
how much negativity is still out there, that's a pretty bullish
cocktail. The new highs today shouldn't come as much of a
surprise."
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
The
Dow Jones Industrial Average (DJI - 13,539.86)
jumped to an intraday high of 13,573.33 following the Fed's
quantitative easing announcement. By the end of the session, the
blue-chip barometer was 207 points, or 1.6%, higher, closing at yet
another multi-year peak. All 30 Dow components finished in the
black today, led by Bank of America Corp (
BAC
), which gained 4.8%.
The
S&P 500 Index (SPX - 1,459.99)
marched all the way up to 1,463.76 today, hitting its highest peak
since January 2008. By the time the dust settled, the SPX finished
23 points, or 1.6%, higher, to conquer 1,450 for the first time in
more than four years. Meanwhile, the
Nasdaq Composite (COMP - 3,155.83)
claimed a decade-plus high of 3,167.63, adding 42 points, or 1.3%,
by the close -- and finishing north of 3,100 for a fifth
consecutive day.
The
CBOE Market Volatility Index (VIX - 14.05)
declined 1.8 points, or 11.1%, marking its lowest settlement since
Aug. 20.
Today's highlight
: "I'm pretty sure there's an old saying, 'Don't fight the Fed,'
and that played out perfectly today," commented Ryan. "It was the
best of both worlds, as Bernanke gave the market the QE3 it wanted,
and at the same time upped his economic forecasts for 2013 and
2014."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Oil futures vaulted to a four-month closing high today, with the
contract getting a shot in the arm from the Fed's latest stimulus
endeavor. Traders also kept a wary eye trained on the Middle East,
as geopolitical unrest spread to Yemen. As the U.S. dollar
weakened, crude for October delivery gained $1.30, or 1.3%, to end
at $98.31 per barrel -- its highest settlement since May 4.
Thanks to the precious metal's status as a currency hedge, gold
futures also capitalized on a fresh round of policy easing. While
the Fed's midday announcement pressured the dollar, gold for
December delivery rallied $38.40, or 2.2%, to finish at a new
six-month peak of $1,772.10 per ounce.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 13,539.86)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,459.99)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 3,155.83)
- support at 2,400; resistance at 3,400
At the end of every market day, the staff at Schaeffer's
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