Market's Getting Tired of Playing Fed Games

 | Jun 15, 2016 | 4:16 PM EDT
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As far as Fed interest rate announcements go, today's was quite meaningless. No one expected a rate hike and Janet Yellen didn't provide any great insight into what was coming. The biggest news was the projected longer-term interest rates are seen as lower, which doesn't exactly inspire great confidence.

The market acted in a confused manner for a while and then the selling picked up into the close. There wasn't any obvious negative as Yellen and the Fed had a dovish tone, but market players seem to be tired of the Fed games and aren't as content with this holding pattern that we are in. Bad news is no longer such a good thing, especially when the Fed's credibility is in question.

As I discussed earlier, it is unusual for the market to have a negative reaction to the Fed even when the news isn't particularly good. The poor close today is an indication that the market is losing its confidence in the Fed. The last time that happened back in January and February, it got very ugly very quickly.

The indices have been giving some warning signs and with the negative close today the SPY has its first five-day losing streak since September 2015. We are still hovering around some key support levels, but this was another day of distribution so the pressure on the uptrend is picking up.

There have been some decent trades in individual stocks like Acacia Communications (ACIA), MGT Capital (MGT), Richmont Mines (RIC), Twitter (TWTR), etc., but it has been necessary to be very selective. If the technical pressure on the indices picks up, then the individual stock picking will become more difficult as well. (Twitter is part of TheStreet's Action Alerts PLUS portfolio.)

It was not the sort of action the bulls wanted to see today, but we are still holding support where we need to. Caution is required just in case support levels can't withstand this pounding.

Have a good evening. I'll see you tomorrow.

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