The Waiting Game
The market is eagerly awaiting the word from the Fed, namely, how much of a rate cut will it make. This morning we’ve seen a very quiet, slow grind higher with S&Ps trading at 1180 in the late morning.
The upside in S&Ps look good as long as we stay above 1177. We have resistance up ahead at 1184-1185.
Nasdaq is at 1550. If we get through this area, the first level on the upside is 1560. To say it’s quiet in the Nasdaq trading pit is a vast understatement.
As for the Fed, the market anticipates a 25-basis-point cut, and some hope is held out for 50 basis points. Remember, the Fed announcement — whatever it is — could very well be an emotionally charged event for the market. So watch up for fake-outs after the announcement.