Market Rallies After Fed Meeting; Microsoft, Meta, Amazon Flash Buy Signals | Stock Market Today

TL;DR

Stocks rallied after the Federal Reserve meeting, with the NASDAQ leading the gains. Microsoft, Meta (formerly Facebook), and Amazon showed promising signs. Other indexes, like the S&P 500 and Russell 2000, also had gains but faced resistance.

Transcript

good afternoon everyone it's Ali Corman Ed Carson with the breakdown of the action for Wednesday November 1st where we saw strength come back into the market after the FED meeting Ed yeah we did it was a strong session especially led by the NASDAQ and there was three Mega caps that uh flash byy signals Microsoft meta and Amazon okay well we'll take... Read More

Key Insights

• 🙈 The market rally is still narrow, with strength mostly seen in Mega caps.
• 🧑‍⚕️ The market's overall health is dependent on the continued strength of the stocks showing positive action.
• 👲 The small caps, represented by the Russell 2000, continue to show weakness.
• ☄️ The 10-year yield coming off can benefit equities.
• 🤘 Software stocks, like Microsoft, show positive signs with strong growth and institutional support.
• ❓ Meta (formerly Facebook) experienced a ShakeOut on earnings but quickly bounced back, indicating potential actionability.
• ❓ Amazon had a significant breakout from a consolidation with accelerating revenue growth.

Questions & Answers

Q: What were the major indexes' performance after the Federal Reserve meeting?

The NASDAQ had a strong gain of 1.6%, leading the rally. The S&P 500 gained more than 1%, while the Dow and Russell 2000 also had gains, although the Russell 2000 showed weakness.

Q: What technical hurdles does the NASDAQ face?

The NASDAQ cleared the 13,000 level, but it still needs to surpass the 21-day and 50-day lines. These are important resistance levels that need to be overcome for a sustainable rally.

Q: Which three Mega caps showed bullish signals?

Microsoft, Meta (formerly Facebook), and Amazon showed promising signs. Microsoft cleared the 50-day line and had a positive earnings reaction. Meta bounced back quickly from a ShakeOut on earnings. Amazon broke out from a consolidation with strong revenue growth.

Q: What cautionary advice is given to buyers in the current market?

It is advised to buy stocks incrementally and not rush into the market. While there are reasons to buy, there have been previous failed attempts at trend changes. Buyers should wait for confirmation and gradually enter the market.

Summary & Key Takeaways

• The NASDAQ led the market rally with a gain of 1.6%, clearing the 13,000 level and showing strength. Technical hurdles, such as the 21-day and 50-day lines, still need to be cleared.

• The S&P 500 had a gain of more than 1%, surpassing the 4,200 level but facing potential resistance at the 200-day and 21-day lines.

• The Dow and Russell 2000 also bounced back, but the Russell 2000 continued to show weakness.