Calm Before The Storm
The S&Ps have seen a 600-point range this morning with no activity to speak of. We have remained on the sidelines before the Fed meeting.
Remember that typically after the Fed announcement there are three to four fake-outs before the market decides upon its direction. On the upside, we have a major target at 1516.50. We should reach that as long as the S&Ps stay above 1508.
The big area is 1500 to 1498 on the downside, which would be tested if this market had a negative Fed surprise. Also, if the market should be overwhelmingly bearish, we could be trading down to 1482.50 to 1480.
If you’re looking for my opinion, I believe this will be a non-event, with no rate hike. The only question is what the bias will be — if one is announced. The market expects nothing more than a “we’re continuing to monitor inflation going forward.”
Do you have a follow-up question about something in this column or other questions about trading stocks, futures, options or funds? Let our expert contributors provide answers in the TradingMarkets Question & Answer section! E-mail your question to questions@tradingmarkets.com.
For the latest answers to subscriber questions, check out the Q&A section, linked at the bottom-right section of the TradingMarkets.com home page.