The Fed Watch…
Today is the second day of the two-day Fed meeting with an announcement regarding a rate cut expected around 1:15 p.m. Central. Until the announcement, the sidelines are where many traders will be.
S&Ps are trading up 0.50 at 1221, till well below fair value by about 4.00 points in a very lethargic overnight session. Above 1225, the market should retest yesterday’s high of 1229.30. The key will be getting a 15-min close above 1229.50. If we accomplish this, we have a crucial zone that should be traded between 1232.50 and 1239.
On the downside, below 1220 we would expect a move back to 1215. We have support/neutral between 1216 and 1214. Below this we have 1211.50, which was yesterday’s low and the low from last week.
NASDAQ is trading down 5 at 1761. The market had settled higher both sessions this week in rather low-volatility trade. For the day on the upside, we have resistance between 1770 and 1780. If we can get above this, we have strong resistance between 1790 and 1806.
On the downside, we have support between 1755 and 1750. If we get below this, we’re looking for 1730. We have a large neutral zone/support zone between 1740 and 1720.
As for the Dow, this market is struggling, to put it mildly. It settled below 10,500 for the first time since April 24.