The Calm Before…
A quiet and calm marketplace awaits the Fed announcement, which could spark its usual level of trading activity.
In the late morning, S&Ps are at 1253 after putting in new highs at 1255.80. The market has been exceedingly thin, however. Interestingly, we saw a decent bounce off the session lows earlier to match the 1254.50 high made just after the opening. The next upside target is 1257.
NASDAQ at 1818 in the late morning, following a rally off the lows at the opening at 1799. The market traded through yesterday’s high of 1827 and filled a minor gap at 1834.
Activity in NASDAQ is very light. Still, it’s important to note that some key NASDAQ stocks have seen good moves off their lows.
As for the Fed, the market is expecting a 50-bp cut. Only a surprise on either side should stun this market. But as they say, time will tell… Keep in mind that Fed rate cut announcements are usually followed by two or three “fake-outs.” Be aware of potential reversals.
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