SPX 1-Minute Chart Yellen Rally New All-Time Record Highs

The key turning point yesterday occurs at 2:47 PM EST. But first, the SPX was 1941 when the 2 PM FOMC announcement occurs announcing a continuation of the $10 billion QE taper as expected. The Fed placed the word 'accommodation' at the top of the statement and bingo, stocks were off and running higher. The Fed ignores inflation which emboldens long traders and sends the SPX to 1949 resistance.

As the Q&A began at 2:30 PM, Yellen was asked about inflation and the hotter than expected CPI data but she poo-poo's inflation and bats the question away like a basketball player defending the hoop. Traders become more bullish since the Fed is ignoring any consideration of inflation.

The big move is at 2:47 PM. Yellen is asked about market complacency and says she is concerned about the lack of fear and excessive risk taking but immediately follows up by saying there are no asset bubbles in markets and stocks are undervalued. What possessed her to say this, as the head of the world's most important central bank, makes you wonder but she cheer leads the stock market as if the Fed's main mandate is solely to pump the stock market higher.

Traders do not waste any time and flood into the markets to buy. The Fed is telling you that they will pump the stock market higher forever. It is shameful but the SPX catapults from the 1949 S/R to print a new all-time intraday high at 1957.74 and new all-time closing high at 1956.98. The chart above shows today's opening action and the SPX prints another new all-time intraday high at 1959.87 and potentially another new all-time closing high but you have to wait until 4 PM to find that out. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.