Hanging In The Balance
With the long-awaited Fed meeting to be held today, a 50-basis-point cut is assured, but the market sees a good chance of a 75-bp cut.
You can’t discount the scenario of a “disappointment” if the Fed action is not as aggressive as the market hopes. We’re sitting on the sidelines until the Fed announcement is made.
S&Ps are up 3.00 at 1183.50, right under yesterday’s high of 1185.50. On the upside, we have a key area at 1189.50, then 1191.50, a major at 1193, 1198, and a critical at 1204.50.
On the downside, we have 1181.50, 1179.50, a key at 1178.50, and a major at 1177.50, then 1172.50 and 1168.50.
NASDAQ is trading up 650 at 1763 after a very impressive rally yesterday. On the upside, we have resistance between 1765 and 1780. If we get above that look for 1825. Along the way, 1805 to 1810 should be some resistance.
On the downside, we have the first big area of support between 1750 and 1720. This will be absolutely critical. If we were to fail here, 1700 becomes the first target. Any trade back into the 1600s would certainly be perceived as a strong negative.
The Dow had its third consecutive close under 10,000, which is not a good sign.