War Fears and Rumors
Fears over conflict with Iraq and a number of war-related rumors have dominated the market today which has been under pressure since the UN Inspector’s report was released.
Now at mid-day, the markets have slowed because of another event: the FOMC meeting. As we mentioned the Morning Meeting, we have a key level on the upside around 851 and above that at 853. We would need to show some strength there to move higher. On the downside, below 845, we would probably test the lows.
As for the Nasdaq, we would see a small improvement in the outlook above 994. We’re back to downside risk below 986.