With no big surprise, the Fed raised interest rates 1/4 point…again.  That's the 13th time in a row. What got the market excited were the Fed notes, specifically the removal of the “accommodative” phrase. There was a knee jerk reaction that saw the Dow up over 100 points. Unfortunately, the Nasdaq and the Semi's seemed to be an anchor on the market as they barely squeaked out a profit. This concerns me along with the internals.

Merge Technologies (MRGE) has experienced a fairly hard sell-off this month with strong volume. It took out support from the end of November. Over the past few days, it has been trying to rally off the lows. The volume is starting to dry up on the rally, which tends to be a precursor for a reversal. If Wednesday's lows are violated, there will be testing of the lows from December 8.

Merge Technologies

With the end of the year in sight and the holidays here, most of the institutions are finished with their portfolio realigning. The raising of the Fed Funds rate is the last major event of the year. I think that the remainder of the year will be choppy, so use your stops to protect your profits and principle.

Tom Incorvia is a swing trader with 18 years of experience in the financial markets.  E-mail him at tincorvia@gmail.com.