Rate Increase Doesn’t Phase Stocks

Published 12/16/2016, 01:24 AM
Updated 07/09/2023, 06:31 AM
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**These are my thoughts on the SPY (NYSE:SPY) ETF in my Daily Trade Ideas**

The Fed raised rates as expected on Wednesday by 0.25% and said they will likely do it 3 times in 2017, but time will tell.

If markets continue to hold and move higher as they have been, we will see 3 rate hikes in 2017. If markets don’t remain strong, we won’t.

Stocks continue to act great after a brief dip on the actual rate hike news, but that was just a quick chance to buy a few positions on the cheap, as we did.

Gold and silver are taking it on the chin hard, but gold is very near the $1,120 support level, and usually, moves on Fed news only lasts 2 or 3 days so let’s see shortly if the metals can find some footing.

SPY Daily Chart

SPY looks to be building a small wedge which means higher is next and I see no reason in the action anywhere that this will no be the case.

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