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Stocks recovered some of the losses of the past 2 sessions as the Federal Reserve said the end of quantitative easing should be in October but don’t look for an interest rate hike anytime soon. Fed Chair Yellen testifies to Congress next week and anything other than the normal dovish stance would be a shock. Stocks came into this week extremely overbought short term with the holiday shortened week spike and now we’ve had a few days of pullback and then a moderate bounce today. The S&P 500 gained 0.46% and the NASDAQ 0.63%. This pullback allowed the indexes to come back and touch some key moving average such as the 20 day moving average for the NASDAQ; much needed.
Here are the long term charts of the 2 major indexes:
Oil continues to fall after attempting a breakout on the Iraq turmoil a few weeks back:
Emerging markets continue to show a lot of relative strength, the ETF does not want to even pullback to its 20 day moving average:
Semiconductors continue to act great – here is an example in the group, Lam Research (LRCX)
Hotels in the consumer discretionary group are also doing well, for example such as Starwood Hotels (HOT)
American Airlines Group (AAL) shares climbed as the company narrowed its second-quarter unit revenue growth forecast, raising the low end and scaling back the high end.