What Time Is It?
Today the market will play the Fed waiting game, anticipating the 1:15 p.m. Central announcement and the hope for a 50-bp cut. A cut of only 25 bp could very well disappoint this market.
This morning, S&Ps are trading down 2.20 on the low of the Globex session of 1101.50. For this morning, quite a thin, choppy and quiet market. You’d have to ask yourself twice why you would want to participate in this kind of a trade before the Fed meeting.
For this morning, we have a band of support from 1102 down to 1098.70. We would look for this area to be choppy and two-sided. If we get below 1098.70, we look for the low end of yesterday’s opening range which was 1097.50, and also the low of the session yesterday which was 1097.
On the upside, we have resistance between 1104.50 and 1106. Above that, 1107 to 1108.50. This should be a key area. Again above this, we have target areas of 1110, 1112.50, 1114.50.
Nasdaq is trading down 5 points at 1474. For today, we have a band of support between 1472 and 1467. If we get below that, we’ll look for yesterday’s low of 1457 to trade, most likely on the way to 1450.
On the upside, we will look for resistance between 1480 and 1484, and above that we should trade to 1495. We expect to find resistance between 1493 and 1497.
The Dow still needs to close above 9520. Today’s reaction to whatever the Fed decides could be the key in that.