Turnaround Thursday? Market Remains Under Pressure Despite Yesterday’s Post-Fed Comeback

Turnaround Thursday? Market Remains Under Pressure Despite Yesterday’s Post-Fed Comeback

Last week, Thursday featured a comeback after days in the red. Can it happen again? After a mostly unimpressive overnight session, the major indices started clawing back ahead of the open. It's amazing how resilient this market remains. The question again is whether the 50-day moving average in the S&P 500 Index (SPX), now near 4080, can continue to hold. There was a nice bounce off of that late yesterday, and it possibly reflected a "buy the dip" mentality that for some investors has paid off again and again in recent years. That doesn't mean it will keep working, obviously, but if you're a football coach and you have a play no one has ever been able to stop, you tend to keep running it. Yesterday's amazing comeback happened despite the first somewhat hawkish words from the Fed since arguably around late 2018. The resilience continued this morning, but we'll see if it can last all day. They've tried to sell it hard a few days in a row, and we could test the 50-day moving average again. By now, everyone likely knows what the Fed minutes said, so we'll offer some thoughts on that farther down. What stood out