Can the S&P 500 Break Out After the Fed?

The Fed raised, but now it's onto earnings from "The Big 3"

The S&P 500 is teetering on a breakout, longs are starting to mock the short, the VIX hit a one-year low and the market is calling “BS” to the Fed’s rate plans of “higher for longer.” 

That said, in a few hours the focus will shift away from Meta’s ~20% post-earnings bump and the Fed’s commentary and back toward earnings. That’s as Apple, Alphabet and Amazon — a combined $4.6 trillion in market cap — report after the close. 

(Then there’s the jobs report on Friday).

Technical Edge — 

• NYSE Breadth: 68% Upside Volume

• Advance/Decline: 72% Advance 

• VIX: ~$17.70

As noted yesterday, it was not what the Fed did in regards to its rate hike — up 25 bps — it was what it said during the press conference that got us moving yesterday. 

Let’s keep it short (and be sure to check out the adjustments on the individual stock trades section if you’re long them). 

S&P 500 — ES 

The SPY and SPX have technically pushed through their breakout point. Because the ES incorporates Globex though, it’s not quite there. 4175-80 is the big level to watch. 

If the ES can clear yesterday’s high and this zone, it could put another 125 to 150 points in play up to the 4300 to 4325 zone. 

If they sell the open, watch 4137. If we dance around and hold this level, it could be a good long. Otherwise, it could open the door back down to 4100-4110 (last week’s high). 

SPY