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Volatility After Fed Statement Sets Stage for Stock Market Highs

NEW YORK (TheStreet) — Trader speculation that the Fed will delay raising interest rates, based on Chairwoman Janet Yellen’s assurance that removing the word “patient” from a policy statement doesn’t mean the central bank will become impatient, sets the stage for new highs in the stock market before the end of this month.

The Dow Jones Industrial Average, the Standard & Poor’s 500 Index and the Nasdaq Composite Index had strong rebounds following the Fed’s two-day statement this week, without setting all-time or multiyear intraday highs. Following a setback for the Dow 30 and S&P 500 on Thursday, here’s the technical set-up for the remainder of March.

The Dow Industrial Average (17,979 at Thursday’s close) has a high probability of ending the week above its key weekly moving average at 17,841. The Dow 30 has declining weekly momentum, with a reading of 77.02 dropping below the overbought threshold of 80.00, which should limit the upside. If the Dow 30 ends the week above a key technical level of 18,102, the upside is to 18,328, which is a key level on technical charts until the end of June. That would be above the high of 18,288 set on March 2.

The S&P 500 (2,089.3 at Thursday’s close) has a high probability of ending the week above its key weekly moving average at 2,068.1. The index has declining weekly momentum, with a reading of 77.49 falling below the overbought threshold of 80.00, which should limit the upside. If the S&P 500 ends the week above a key technical level of 2,096.4, the upside is above its current all-time intraday high of 2,119.59 set on Feb. 25.

The Nasdaq (4,992 at Thursday’s close) has a high probability of ending the week above its key weekly moving average at 4,850. The Nasdaq still has weekly momentum at 84.78, above the overbought threshold of 80.00. If the Nasdaq ends the week above a key technical level of 4,962, the upside is to 5,245, which is a key level on technical charts until the end of March. That would be above the all-time bubble high of 5,132 set in March 2000.

Must Read: Hey Investors! Here’s What You Should Be Watching Besides the Fed

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Volatility After Fed Statement Sets Stage for Stock Market Highs Reviewed by on . NEW YORK (TheStreet) -- Trader speculation that the Fed will delay raising interest rates, based on Chairwoman Janet Yellen's assurance that removing the word " NEW YORK (TheStreet) -- Trader speculation that the Fed will delay raising interest rates, based on Chairwoman Janet Yellen's assurance that removing the word " Rating:
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