Today’s action is divided around three things, says Jack Bouroudjian.
Cash flows: At the beginning of the month, we usually see strong cash flows and that happened to start Wednesday before a reversal.
The Fed: Today’s statement strongly signals a rate increase in December, and the FOMC has already said they’re looking at three hikes next year. However, Fed Fund futures has factored in only one rise for 2018.
Strong earnings: What will happen with tech stocks earnings over the next two or three months. This is typically a strong time of year for equities. It’s very frothy, says Jack, and it may remain that way for a while.