Just a quick comment to advise, the rally dropped back after the news was released that the Fed minutes indicate plans to reduce their $4.5 trillion balance sheet this year.
That took investors by surprise and sent the market tumbling back. You can see the news breaking at 2:00 PM and the market giving back today’s rally. At present 2360 on the S&P looks steady.
Momentum plunged on the news which could mean quicker interest rate increases this year, so the pundits now believe investors will see at least 3 more interest rates this year, possibly 4 as the Federal Reserve moves toward trying to “normalize” interest rates.
SPX Chart Intraday Apr 5 2017
I will be writing more on this, in the stock market outlook this evening.
This is a knee-jerk type reaction which could send the SPX below 2360 but I am expecting the drop to be temporary, perhaps a day or two.
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