Tick…Tock
A quiet market with a very tight range as we await the Fed action.
It appears the Fed will make a cut in rates, but how much is still uncertain. A 50-basis-point cut may be a major disappointment for this market, which is hoping for 75 basis points.
S&Ps are currently at 1190, with a low of 1179.50 and a high of 1190.80. S&Ps are getting some help from the Dow pushing over 10,000. Resistance up ahead at 1191.50.
Overall, the market is thin and choppy during the waiting game.
NASDAQ spent much of the morning between 1762 and 1744. Overall, we’ve seen activity jumping above and below unchanged.
Given this anticipation, be careful of fake-outs after the FOMC announcement. It’s not uncommon to have three fake-outs — moves in one direction or another that fail to be carried through — before the trend materializes.