Trading on The News
See below how the market traded down during the day as it approached the 2 o’clock hour when the FOMC announcement would occur. Then once it was announced that rates would be hiked in the future (most likely September, but not NOW) the market quickly rallied. To then sell off as bulls took their gains. It’s an expected hysteresis from such an important news report. It doesn’t affect the long investor, but it can be a great opportunity for the short term trader.
*Chart from Google Finance
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