The market continued to power higher today, right up to the point where Facebook released earnings and then got taken behind the woodshed during their conference call.
There is no way to tell yet how this will impact the broader markets on Wednesday, but in the late session after hours, the market is down and Facebook is now down about 7.5%.
After the initial shock in the morning, things will go dull while everyone waits for the much hyped Federal Reserve Open Market Committee (FOMC) Policy Statement.
As usual, the markets will gyrate during and directly following the announcement, then settle in to what normally is an up finish. We’ll see what tomorrow brings.
The Dow, S&P and NASDAQ markets are all over extended since the bottom on October 15. The markets can certainly move higher, but any longer term sustainable move will have to come after a period of consolidation which in trader terminology means pull back.
Most of the commodity complex caught a bid today, possibly on anticipation of more easy money policy and a weaker dollar. Any rally in the commodities will most likely be met with sellers in short order, since the dollar is only at a weigh station on the road higher.
More analysis in tonight’s video.