The news from the FED was good news for the markets. As you already know, the FED will continue to print money and that is stock, commodities and bond markets. More fresh money into the markets means more money into stocks, commodities and bonds.
A new FED chairman/woman will take place early in 2014. When is the tapering going to take place? It should be now, but it didn`t start now, and I don`t think it will be before the next FED chairman/woman is on place. In the meantime; investors are trying to figure out when it will happen, because it will affect the markets.
Options programs expires today, and that happens four times a year. Equity options, stock index futures, stock index options and single stock futures are expiring too. This moments tend to move the markets, but sometimes it only goes sideways. This happenings is called “Quadruple Witching”.
I will keep an eye on the crude oil today. Trading range for crude oil has been between 102 and 110. It is time for a breakout because this trading range has been a sideways trading range for eight weeks now.
Technical resistance in Gold are at $1400. Support at $1307. Right now the price is $1364. I will look for breakout on this targets, and a close above $1400 are bullish. I see a strong support on $1307. Gold have been in an downtrend for a long time now.
Take a close look at the SPY index. MACD is bullish, but the RSI is high. Normally when it breaks the upper bollinger band, it`s a game changer. You can see in the chart how it worked back in may. Next week I will have a very special history about next week. In the meantime, I will spend this weekend trying to figure out what FED people are thinking right now.
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