Stocks Tumble after FOMC
Stocks have broken down from 4440, and sought out lower levels in the 4300 handle after dipping as low as 4272. This followed the FOMC meeting, where the Fed delayed an interest rate hike but noted that a hike every subsequent meeting for 2022 was not out of the question. This and balance sheet reduction is their plan to combat the highest inflation in a generation. The markets jostled to digest this information with choppy trading before stocks dumped to lower levels. The Kovach OBV is tapering upwards in an apparent divergence with price, which fell through two handles before finding support in the 4300's, reaching 4353, where we are seeing resistance from a red triangle on the KRI. If we fall further, then we should have support at 4245 or 4223. If we rally, then we will see resistance at 4440. It is likely that stocks will try to establish value somewhere between these two bounds before making their next move.
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