Equal-weighted SPX and IWM have both made new all-time highs

Technical trends for US Equities are bullish, and I think the price action post-FOMC certainly seems to tilt the odds that a move back to new highs is now likely into year-end.  I had been hopeful for consolidation, which would create a bit better risk/reward opportunity for the US Equity market, but I'm not sure this will happen, given that RSP and IWM are both pushing back to new all-time high territory.  The Mid-cap 400 ETF ($MDY) is also quite close to making its own all-time high, and the act of clearing the consolidation since September is clearly a technical positive. While SPX and QQQ still haven’t reached new all-time highs and are underperforming Small, and Mid-caps given META and NVDA’s lackadaisical nature in recent weeks, I think the Bulls have an easier path then was expected a week ago between now and end of year.  Overall, my expectation is that Equities can likely push back to new highs, but that Small, and mid-cap exposure should be favored for now until stocks like NVDA can begin to strengthen a bit more.

Without delving too much into the details of the FOMC meeting, I think it’s safe to say markets rewarded the FOMC’s “dovish cut” with rallies in both Stocks and bonds on Wednesday.

Thus, 2 to 5 dissents and a dot-plot that looked basically unchanged looked to have met expectations for markets as of the close. (Not that a dot-plot change would mean too much, I feel, if there is a coming change in Fed leadership come next spring.)

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