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The charts and comments in my Blog (posted in Eastern Time) represent my technical analysis and observations of a variety of markets...
*World Indices *U.S. Indices *Futures *U.S. Equities & Sectors *ETFs *Commodities *Forex
...an expanded version of the "Observations" section in my private Daily Trading Journal.

*** N.B. to my readers: Although I stopped trading in July 2013, I still take a peek at the markets now and then and post the occasional article here on my Blog.




* Fri. May 29 @ 8:30 am ET ~ GDP + last trading day of the month
* Wed. June 3 @ 2:00 pm ET ~ Beige Book
* Tues. June 16 ~ 2-Day FOMC Meeting begins
* Wed. June 17 @ 2:00 pm ET ~ FOMC Meeting Announcement + 2:30 pm ~ Fed Chair Press Conference + FOMC Forecasts

Wednesday, December 12, 2012

12/12/12 FOMC Rate Announcement

Here is the link for today's (Wednesday's) FOMC press release regarding their interest rate and asset purchase decisions following their two-day meeting:

This excerpt explains their current timeline and parameters relative to the continued implementation of this low interest rate:

     "In particular, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee’s 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored."

The Federal Funds Rate will be maintained at 0.25%, as shown on the graph below.

Equity markets rallied after this news, and, on the Major Indices, the SPX and RUT are currently trading above their major uptrend line from the October 2011 lows, the DJI is backtesting its trendline, and the NDX is still trading well below its trendline, as shown on the Weekly charts below.

Bulls should be looking for the DJI to break and hold above this trendline and for the NDX to follow suit (as well as for the SPX and RUT to hold above their trendlines). Otherwise, we may see another break and possible test of this year's lows, or lower.

Meanwhile, data released, subsequently, shows that the Federal Budget Balance deficit has increased, as shown on the graph below...and the "Fiscal Cliff" issue remains unresolved.