The Fed was more market-friendly than expected today, but it’s hard to imagine the market taking off as the Fed begins a rate increase cycle; the first rate hike has historically been more likely to spark a pullback. Today was a good start, but we wouldn’t be surprised to see a good pullback before the market can put in a sustained move higher. The Nasdaq (first chart below) broke out above 2040 resistance today, then ran into more sellers below the 2060 resistance level, as traders with losing positions from the first-half swoon remain eager to sell. Resistance is 2060 and 2079, and support is 2035-2040, 2023 and 2013. The S&P (second chart) was once again stopped below 1147-1150 resistance. 1145 is the first hurdle, and support is 1138 and 1133-1134. The Dow (third chart) faces resistance at 10,488 and 10,500-10,570. Support is 10,400, 10,375 and 10,340. And the all-important banks (fourth chart) managed to hang on today.
