Submitted by Lance Roberts via RealInvestmentAdvice.com,
As I noted on Thursday, the Fed non-announcement gave the bulls a reason to charge back into the markets as ‘accommodative monetary policy’ is once again extended through the end of the year.
Of course, it is not surprising the Fed once again failed to take action as their expectations for economic growth were once again lowered. Simply, with an economy failing to gain traction there is little ability for the Fed to raise rates either now OR in December.
However, it was the docile tones of the once again ‘Dovish’ Fed that saved market bulls from a ‘bearish’rout. The recent test of the bullish trend line from February lows combined with a move back of the 50-dma clears the way for the markets to retest, and potentially breakout, to new highs.
This post was published at Zero Hedge on Sep 23, 2016.