Big Money are Net Buyers after the Fed Cuts Rates 1/4%...SPX/SPY Rallies and VIX Falls...

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Price reaction to the Fed ¼% cut and the 2:30 pm ET News Conference.  Talk is cheap.  One can listen to all the commentary one chooses.  In the end, Institutional action speaks louder than words.  Institutions bought the rate cut and Powell’s subsequent News Conference 30 minutes later.  How do we know?  Look at the chart of the actual buying and selling price action on SPY, VIX, JPM and KLAC, just to point out four.

Just before and after the 2:00 pm ET Fed rate cut: SPY, VIX, JPM, KLAC

                          (click image to enlarge)

The DJIA, closed up 36 points at 27,147 led by strength in BA, AAPL, JPM, GS and MSFT.  Closing above 27,000 for the sixth day in a row.

Four of eleven sectors were higher on Wednesday, led by real estate XLRE +1.41% and utilities XLU +0.87%.

SPY up .18 at 301.10 on 74.1 million shares, average volume.  Up on higher volume.

VIX down .49 at 13.95

Oil down .44 at 58.19

TLT up .59 at 139.03 on 11.1 million shares.

GLD down .89 at 140.71

BA +1.41%, AXP +1.20%, led the DJIA, 17 advancers, +2

CMA +2.20%, SIVB +2.07% and LEN +1.98% led the SPX.

KLAC +3.53%, AMAT +1.74%, ILMN +1.59% and ADI +1.11% led the NDX.

Long term up trend intact.  3-day short term trend is sideways.

Up: DIA, SPY,

Down: IWM, QQQ,

Breadth weakened slightly on Wednesday, as decliners led 1,569 to 1,348 on the NYSE and led 1,825 to 1,217 on the NASDAQ

The SPY MFC green line is in the upper zone at 92 and is short-term bullish. 

Uptrend sectors: XLRE, XLU, XLP, XLY, XLK, XLC, XLI, XLF, XLB,

Neutral sectors:  XLV,

Down trend sectors: XLE,

The 6-month intermediate trend is up.  The ten-day trend is up.

3-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Sideways

38 of 100 NDX stocks closed higher on Wednesday.

75 NDX stocks are above their 30 DMA:  SBUX, CELG, KLAC, NTES, SYMC, PEP, EA, ATVI, BKNG, CHTR, COST, JBHT, CMCSA, QCOM, AAPL, MYL, SIRI, ASML, LRCX, MU, NVDA, ROST, WDC, DLTR, LBTYA, AMAT, AVGO, CSX, CTSH, CTXS, INTC, JD, NXPI, TXN, AAL, ADI, AMZN, EXPE, FAST, FB, GOOGL, LULU, MCHP, MXIM, NTAP, SWKS, TSLA, WBA, ADSK, CTRP, GILD, TMUS, UAL, BIDU, CHKP, HAS, HSIC, KHC, MAR, WYNN, BIIB, CSCO, ILMN, ISRG, EBAY, WLTW, MNST, BMRN, MDLZ, MSFT, ORLY, PAYX, SNPS, TTWO, VRSK, XLNX,

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 1

XLNX,

Moving Below 30 DMA = 3

AMD, NFLX, PYPL,

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