Surprise

Surprise...

that FED stuck to its bond buying program. After two days meeting they chose to keep further the QE, 85 billion a month and said would wait more evidence of progress. All the US indexes hit intra day records on that no tapering news. In a press conference, Fed Chairman Ben Bernanke said the bank might still scale back its purchases before the end of the year, but it will depend on whether growth and the pace of hiring show greater strength. The Fed's decision surprised the traders and broke the consensus on expectation "tiny taper" in a range of $10 billion to $20 billion. The Fed will meet again on Oct. 29-30. We do believe untillthat time the market keeps going in this pace up, because the sentiment is so bullish fundamentally.

Some market datas:

Dow 15,677, +147, 0.95%

Nasdaq 3,784, +38, 1.02%

S&P 500 1,726, +21, 1.25%

Nikkei 225 14,720, +214, 1.47%

Hang Seng 23,512, +395, 1.71%

Technically, as weforecasted at the beginning of this week the market gained a lot and hit our target level on Dow - 15.650.

What comes now? Might be some quiet day, a bit ranging period. But we are still bullish and the next challenge for Dow is the 16.000, which is a key resistance level. But frankly we don't have indication now because we are at new historical high and there is only the sky over our heads. The daily chart clearly shows the big breakout:

HAVE A GOOD DAY!