Post Dovish FED Validates 2nd Price Call

DOW JONES POST FED 10.08.15

With the FED minutes keeping the rates at its current levels have been the catalyst to drive the major stock indices higher, while meeting our 2nd price target for the DJIA above the 17040 price call stated last Oct 01, 2015. 

While the SP500 and the JP Nikkei Average worked towards their respective price levels @2013.43 and 18210 accordingly. This gave bull traders and investors quite a reason to celebrate contrary to the 3rd quarter 2015 poor performance on stocks.

The early trading session also were keen to see a relative lower USD touching a well technically supported price level @95.05 that reflected a rebound while still working at the session corrective price @95.30 levels. For as along as these prices hold above the USD's equilibrium levels, the currency market would continue to experience volatility where price pullbacks would be a norm. Particularly with the European single currency the Euro briefly touching the 1.1315 session high and drifting lower back to where it came from @1.1223 and again recovering post FED minutes release.

On the tech angle, the EURGBP & EURJPY cross rates respectively provided the relative support as made mention.  With Cable and USDJPY held stead fast while trading in a tight range where Cable is @1.5352 and the USDJPY @119.95. The currency market's price consolidation is getting tight as a breakout is just a matter of time. Although, the first clear signal has already been provided by the FED, yet alone do we need to see a break. Most chart patterns have been identified, all we have to find out is how volumes and market behavior plays out current market conditions.

With that said, by keeping a close monitor of the US DJIA, SP500, NASDAQ and Asia's JPN225, China's Hang Seng including Bloomberg's JP Morgan Asian Dollar and the US Dollar Index would traders be more in the loop of keeping at proximity as to how all these relatively correlated markets ca best suit thier respective market analysis where it all starts before properly executing their trades in the market.