The Dow Jones Industrial Average closed above 33000 for the first time Wednesday after the Federal Reserve pledged to maintain its easy-money policies as the U.S. economy recovers from the damage of the Covid-19 pandemic.
After today’s session, all four indices remain in an UPTREND on all timeframes.
FUTURES PRICE LEVELS
The S&P500 index pulled back to the 3930 support area after the open, however, once Jerome Powell announced that Fed would continue to increase bond purchases until ‘substantial further progress’ made on maximum employment and price stability goals, the index went from negative to positive in minutes. The S&P500 closed today’s session at the 3970 level and if the futures continue trend higher overnight, the index will most likely continue printing new all time highs over the next several sessions.
Nasdaq Closed Above 50d MA
The Nasdaq index was down -1.3% today in the morning, however, after the Fed’s announcement, it quickly reversed and closed the session up +0.38%. Today’s close also brought the index above its 50d MA. This is the third time since the March 2020 bottom that Nasdaq dropped below its 50d MA but was able to recapture it several sessions later. The prior two instances led to higher prices.