9:00am (EST)
The bears were looking to extend their winning streak to 5-straight sessions on Friday but the bulls got back on their feet before the weekend and were able to hold support into the close. We knew coming into last week the bulls would ride or die on the Fed’s announcement on Wednesday. The momentum from the week before had taken the major indexes right to the top of the current 2-month trading range and a breakout was on the horizon if the Fed said something good.
They didn’t and instead, the Fed seemed more pessimistic on their economic outlook which led to a selloff late Wednesday afternoon. Specifically, they warned that there were “significant downside risks to the economic outlook, including strains in global financial markets.”
Of course, the language from overseas continued to be shaky as a few European officials went on record and said the possibility that Greece will likely default is strong. However, the market held up Friday after the G20 said they’d do everything necessary to stabilize the euro and shore up growth. As a result, the market finished with its worst weekly performance since 2008, despite a clean sweep by the bulls the prior week…
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