FOMC Meeting Begins
S&Ps are trading at 1135.80, up 0.30 and well above fair value to the tune of about 2.30 pts. Today begins the two-day FOMC meeting. Also, we have Consumer Confidence today.
For today, 1137.50 to 1141.50 is critical resistance. There has been a tremendous amount of liquidity between 1137 and 1139 over the past few sessions. On the upside — if we do in fact get above 1141.50 — our near-term target becomes 1145.
On the downside, if we fail to take out our zone, we anticipate a choppy two-way trade down to 1133.50. We have support between 1134.50 and 1133.80. Below 1133.50, we’re going to look for a move to 1131.80, where we have support between 1132.50 and 1132.20.
Nasdaq is trading up 6.00 points at 1578.50. On the upside, 1579-1581 remains a key area. If we get above it, 1585 was yesterday’s high, followed by the key area at 1595-1610. Once again, the trade in this zone will be critical. If we get above 1610, 1625 is the target.
On the downside, what we are looking for is if this market trades down to our first support zone between 1568 and 1564. If the market bounces into the 1570s, then fails and takes out our support zone, our target would be 1550.