What Will It Be?
What will it be — 25 or 50 basis points? That’s the question on the mind of the market today as we await the FOMC’s decision on yet another cut in interest rates.
As is typical the day of a Fed announcement, expect a very quiet, uneventful trade until after the Fed decision is made public. The sidelines may be the best place to be until that announcement is made.
This morning, S&Ps are trading up 1.00 at 1176.70. To get rolling on the upside, we need to get above 1182. On the way, we have 1179.50, which is a key area, and 1180.50.
On the downside, we’re looking at 1173.50, 1171 and 1168. We have major support at 1167.50 and critical support at 1163.50.
Nasdaq is trading up 2.50 at 1545. On the upside, our first target is 1560. Along the way, we have resistance at 1545 to 1550 and 1557 to 1566. On the downside, we have support at 1525 to 1515. If they get below that, we’re looking for 1495 to trade.
The Dow is still in the neutral/bearish zone. We need to close below 10,200 or above 10,650 to break out of this zone.