Todd Harrison: What to Watch in the Post-FOMC Marketplace

By Todd Harrison  MAR 20, 2014 8:57 AM

The reaction to the news will be more important than the news itself.


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Janet Yellen stepped on stage yesterday and learned a real-time lesson on the gravity of her every syllable. In mentioning that a "considerable" period (between the end of QE, presumed to be the fall, and the first rate hike) is six months, she unwittingly triggered sell orders from the "ready-fire-aim" crowd.

The tape cascaded lower and registered a low tick of S&P (INDEXSP:.INX) 1850.35 -- which is a crazy coincidence for those who believe that technical analysis doesn't matter -- and bounced in kind as the bulls defended their turf and made a bet that Federal Reserve officials would backtrack and qualify the remarks, as Federal Reserve officials tend to do.

Sometimes you can learn a lot just by watching, and the price action that stood out to these eyes yesterday was the relative traction in the financials in the face of supply.

We've spent a lot of time identifying the technical road map for risk -- I'm a big believer that TA is a better context than catalyst -- and an upside breach of BKX (INDEXSP:BKX) 71.50, along with TRAN (INDEXDJX:DJT) 7600, will provide technical affirmation of the recent breakout in the S&P, NDX (INDEXNASDAQ:NDX), and Russell (INDEXRUSSELL:RUT) so long as they hold 1850, 3640, and 1182 respectively.

I've included the charts of the BKX and TRAN below

What else? Glad you asked. Here are some Random Thoughts, in no particular order:


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No positions in stocks mentioned.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at

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