Fed Announcement & NASDAQ Composite Charts
At the end of its meeting today, the Federal Reserve announced steps to bolster the economy as the reports say.
Let us take a look at the charts of NASDAQ Composite to see whether our oscillators were useful in anticipating the market moves after the announcement.
Below is the 4 panel layout of NASDAQ Composite chart at 1:30pm today (8/10). The zoomed in view of the top panels are presented here for clarity. The fast and mid oscillators in these panels will capture the short term market movement after the Fed announcement. The impact of the announcement if any is likely to take some time before imparting momentum to the slower oscillators and indicators in lower panels.
On the top right we see that the Intraday residue (gray) is out of lower bound ready to turn around. So are the fast oscillators. In the left panel, we can see that the two components of the Pink oscillator are turning. We know that the oscillators are vulnerable at their turning point. So here we can guess that the upcoming upward movement of the fast oscillators would impact the Green oscillator and delay its turning while encouraging the Violet to turn upwards.
Below is the chart at 2:30pm after the Fed announcement. We can clearly see the upward move of the fast oscillator and the residue. As expected the Green oscillator was affected at its turning point and the momentum from the fast oscillators managed to turn the Violet upwards.
Earnings announcements may affect an individual stock's oscillators much because the unexpected news can bring in lot of new activity in the market for that stock. Fed announcements are more of "expected" events which our oscillators tend to anticipate!
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