Post Fed And Quiet
The equity index markets have held onto yesterday’s massive gains on the heels of the FOMC’s 50 basis point easing. I came in looking for some type of downside probing in the SPH, and while we have been unable to trade above yesterday afternoon’s 1365.50 high, the downside has been quick to scare the shorts.
Institutional action was heavy on the open and just like yesterday afternoon, we saw a two-sided market between 1355-1365. This area is critical for the SPH. If we can muster above it, I would look for 1380 to trade. In the meantime, the main scenario I would like to see would be a test of the 1340 afternoon low from yesterday followed by a rally into the close. The only problem is this: I don’t know if we can muster enough volatility for this to play out today.