On Wednesday, the Federal Reserve announcement continued its past promises of reducing their bond-buying program and keeping interest rates low.

The 120-billion-dollar bond-buying program will first look to reduce 15 billion per month beginning near the end of the year before it moves towards raising interest rates.

Looking through the eyes of the major stock market indices, both the S&P 500 (SPY) and the Dow Jones Industrials (DIA) held over the prior days high but were not able to clear the gap created from Monday. 

This is a pivotal price level to clear. 

On the other hand, the Russell 2000 (IWM) and the Nasdaq 100 (QQQ) tested their 50-Day Moving Average (DMA) before closing below them. 

While traders watch for a strong end-of-week rally, the Federal Reserve ’s announcement hasn’t given us any new information.

This shows that the market neither has more incentive to run higher nor reason to break any lower based on the latest update.

Having said that, from a technical standpoint both IWM and QQQ need to clear their 50-DMA while both the DIA and SPY need to fill their gap created from Monday.

As seen on the chart, if these levels can’t be reached stay cautious as the market continues to show how quickly it can sell off. 

Twitter: @marketminute

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.