After the eventful day Wednesday, markets were relatively calm yesterday as traders contemplated the new environment we are in. All fears of a massive sell-off on tapering news turned out to be unwarranted.
Many of us were wondering what Thursday morning's action would bring, as investors worldwide had the night to digest the Fed's announcement. There are some key takeaways which indicate the Wednesday rally should hold and provide a base for more gains into year end.
Thursday's action did not begin with a large gap-down as one would almost expect after an emotionally driven rally. The Dow moved down slightly in the morning but recovered by the mid-point of trading to close the day positive. Looking at the chart below we can see the Dow rallying off its 50-day moving average to set new all-time highs on both Wednesday and Thursday. So far the Transports have not confirmed the new highs ... Log in or subscribe to continue reading.
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