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  • The Dow Jones Industrial Average (DJIA)  dropped 162.77 points, to 26,430.14, a loss of 0.6%.
  • The Nasdaq Composite Index lost 45.75 points, or 0.6%, to end at 8,049.64.  
  • The S&P 500 index fell 22.10 points, or 0.8%, to 2,923.73.

Wall Street didn’t like the Fed outcome.  U.S. stocks fell back on Powell’s presser when he said that there was not a “strong case” to expect an interest-rate cut in the near term. The Dow Jones Industrial Average (DJIA), had its worst day since April 9 and dropped 162.77 points, to 26,430.14, a loss of 0.6%. The S&P 500 index fell 22.10 points, or 0.8%, to 2,923.73 following a new intraday high that was set in early trade Wednesday at 2,954.10. The Nasdaq Composite Index lost 45.75 points, or 0.6%, to end at 8,049.64.  

FOMC:  

“In the FOMC statement this morning, the language contained only a very subtle tweak from March, reflecting updates for the actual data. The statement noted that the US labour market remains strong and that economic activity rose at a solid rate (previously “growth has slowed”). There was a downgrade to the assessment on inflation saying both headline and core are running below 2%, but Powell noted that may reflect some transitory factors. The interest on excess reserves (IOER) rate was cut 5bps, which we see as a technical adjustment with no policy significance,” analysts at ANZ explained.

DJIA levels

Technically, the index is still trading around the pivot but has fallen below the 20-4HR EMA with a look in at the 20-D EMA. Stochastics are leaning bearish and a run back to test 26000 will be opening risk towards 25700s. A subsequent break of the 50-D SMA just below 26000 opens risk to the 23.6% Fibo retracement of the late Dec rally at 25500 guarding 25300 (200 D SMA). A break all the way down to the 24800 gap area would come into target ahead of the 24500s and then 50% of the upside run made at the end of Dec at 24150.