12/12/12 FOMC Rate Announcement (by SB)

By -

Here is the link for today's (Wednesday's) FOMC press release
regarding their interest rate and asset purchase decisions following their
two-day meeting:
http://www.federalreserve.gov/newsevents/press/monetary/20121212a.htm

This
excerpt explains their current timeline and parameters relative to the continued
implementation of this low interest rate:

"In particular, the
Committee decided to keep the target range for the federal funds rate at 0 to
1/4 percent and currently anticipates that this exceptionally low range for the
federal funds rate will be appropriate at least as long as the unemployment rate
remains above 6-1/2 percent, inflation between one and two years ahead is
projected to be no more than a half percentage point above the Committee’s 2
percent longer-run goal, and longer-term inflation expectations continue to be
well anchored."

The Federal Funds Rate will be
maintained at 0.25%, as shown on the graph below.

Equity markets
rallied after this news
, and, on the Major Indices,
the SPX and RUT are currently trading above their major uptrend line from the
October 2011 lows, the DJI is backtesting its trendline, and the NDX is still
trading well below its trendline, as shown on the Weekly charts
below.

Bulls should be looking for the DJI to break and hold
above this trendline and for the NDX to follow suit (as well as for the SPX and
RUT to hold above their trendlines). Otherwise, we may see another break and
possible test of this year's lows, or lower.

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