After the Fed interest rate announcement on September 18, 2024 at 2:00 p.m. ET, the Dow moved to a high of 41,981.97. A review of block trades during this time revealed a majority of trades were conducted by retail traders and computer algorithms. The end result was a long tail candle for the day, which typically signals a reversal.
It should also be noted that the Dow continues to follow its 16.83 degree upper trend line, as shown below. A decline going into October 2024 is still expected.
Note that this information is for educational purposes only and not a recommendation.
Charts courtesy of StockCharts.com.
