Waiting For The Fed
At mid-day, the S&P and Nasdaq futures markets are quiet and roughly unchanged, waiting for the announcement from the Federal Reserve, expected around 1:15 p.m. Central.
With S&Ps around 864, the outlook has improved and may point to a test of 865.50-866. On the downside, however, if S&Ps go below 860 we would look for a test of the 859-858 area, which if broken should lead to a test of 856 and later 852.50. As we said in the Morning Meeting, we see the area from about 852 down to 850 as critical support.
With Nasdaq futures around 1073, the longer-term trend is now at 1075. Below this, Nasdaq will likely try for the 1068-1066 area. On the upside, they will have to get above 1078 to encourage the buyers.