Whilst the broader market settled significantly higher in the sp'2100s, there was more pronounced upside power in financials, with Bank of America (BAC) settling +1.7% @ $17.06. A monthly close in the $18s would be extremely bullish for 2016... with subsequent targets of $20, and then $23 by late spring.
First, regarding the Fed and interest rates...
It has been a VERY messy year in terms of the Fed. They had ample opportunity to raise rates.. but having repeatedly delaying, such uncertainty was a primary cause of the capital market upset in August.
Currently.. my best guess (although it IS also a hope).. is that the Fed raise rates at the next FOMC of Dec'16th.
A 25bps move would finally be 'lift off'.. and open the door to further periodic increases.. eventually to 2-3% or so by late 2017.
I realise some might call that 'crazy talk'.. but I am of the 'old school' economic view, and higher rates ARE bullish for financials... and the broader economy.
Technically. if BAC can attain an $18 monthly close.. it will open the door to a relatively straight up move to $20.. and then $23 by late spring.. which would make for a natural pre-summer cycle top.
First things first though.. lets see if BAC can attain an $18 close for Nov... or far more viable... this December.