Anticipation…

S&Ps are in a tight range this morning, with a 1386.20 high and a 1377.10 low, as this market is engaged in full-fledged “Fed watch.”

As we said this morning, the market is fully anticipating at least a 50-bp cut. In fact, only a more aggressive move or stance by the Fed will produce a significant upside for this market. At the current level of 1383, we’re are just 13.00 points above the 1370 high on Jan. 3, the day the Fed made the “surprise” 50-bp rate cut.

At the moment, the Pit is half empty and we are on the sidelines until the 1:15 p.m. Central announcement.

On the upside, the key level will be 1389.50. We need to get above that level and stay there to have a shot to run to 1400.

On the downside, if we get only a 50-bp cut, look for 1370, or in plain words, the status quo.

Also, remember that Fed announcements tend to have three fake-outs before a move is confirmed.

NASDAQ, meanwhile, has a steady, slow upward bias as we await the FOMC action.