Wednesday, June 17, 2015

Yellen Is The Word

The Market Trend Model (data sheet) remains with a positive bias as last week's buy signal remains intact. The Russell 2000 (chart) continues to lead the market higher with the Nasdaq (chart) right behind it. Meanwhile the Nasdaq-100 (chart) and the S&P 500 (chart) continue to lag.

For quite some time now stock sellers and the TV talking heads would have one believe the world is about to end with the potential Greek exit from the Eurozone (article). In my view this is really a non-event as this possibility has been on the horizon for many months, if not years.  At this point in the game any news relating to Greece is likely to be a non-event for the stock market indexes.

The other topics du jour were the Federal Reserve monetary policy and the following Janet Yellen question/answer press conference (article).  What the Fed and Yellen will do with interest rates in the future is anyone's guess.  And if Yellen's press conference is any indication, future interest rate hikes are a guessing game for the Fed as well.  Regardless of what was said (or not said), interest rates continue to remain unchanged "even lower for even longer," as one TV pundit proclaimed.

At the moment the stock market indexes continue to be range bound with an upward bias.  As always remain mindful that anything can happen in the stock market from one day to the next.