Now What?
The FOMC has eased 100 basis points in the past months, and with the easing has come a severe contraction in the equity markets volatility.
Today’s session underlies just how tight these trading ranges have become. The SPH has registered a range of under 1%. Locals were aggressive sellers after the release of yet another weaker-than-expected economic release. This time it was NAPM. The ensuing selling pressure took us down to 1366.50. However, in no time the buyers resurfaced and we pressed to the our near-term resistance areas of 1378 in the SPH and 2737 in the NDH.
As for the rest of the session, it appears to me that the market could go either way. There is little interest in the trade, as most players are positioned already. One release that could have some impact is the release of the FOMC minutes from their December meeting at 1:00 CST.