The Dow Jones Industrial Average closed down 352 points today. Ahead of the Fed announcement the Dow was up just over 380 points. At the day’s low the Dow had fallen nearly 900 points from the intra day high before mounting a late bounce. The Dow closed at new 2018 lows after dipping well below Monday’s low.
Some stock action of note(Dow members):
$WMT continues to hold a very solid support zone($91.00-$89.00). It did not make a new December low today nor a new low for the week.
$IBM did not make a new low for the week, selling pressure has been light this week.
$VZ finished the session with a slight gain(the only gainer in the Dow). It did not make new lows for the week today.
$DIS did not make new lows for the week today as it continues to hold above its 200 day moving average.
$GS did not make a new weekly low today.
$DWDP did not make a new weekly low today.
We agree with Brian Wesbury here, stock investors overreacted to a more dovish Fed. And remember, it’s still not too late for a ‘Santa Claus’ rally. Hard to believe, as mentioned above, there were a few bright spots today.
At time of publication we are long $WMT and $VZ in some managed accounts.
Hat tip Brian Wesbury/Ryan Detrick.