The market closed up triple digits today as stocks rally more than 1% ahead of Fed
U.S. stocks closed more than 1 percent higher Tuesday as investors eyed some of the final data reports leading into the Federal Reserve's key meeting.
The market's just kind of drifting around a little bit, if you look at the spx chart below. The volume's so light, I think it's the path of least resistance. There's less selling pressure on a given day because of the Fed coming out.
The important part of the next few days, is to see if the S&P 500 can hold above 2,000 in the near term.
The S&P 500 and Nasdaq composite each gained more than 1 percent, both within 8 percent of their 52-week highs. In early trade, the Nasdaq dipped into negative territory.
Lets be honest here, we are in a market that's been meandering this week in a wait-and-see mode, the positives in the market are coming from the commodity complex,
There's a big camp out there that (believes) any negative news is going to keep the Fed on hold. They focus on the near-term rather than the big picture. We will have to see about that. Because one thing that can be learnt about the FED is they basically have surprise everyone with their decisions lately.
Traders await a possibly historic decision on short-term interest rates, significant market moves were not expected ahead of the Fed meeting.
Everything is coiling and waiting for Thursday and the trading ranges are shrinking day by day as we move into Thursday, and there's a lot of big cash positions out there.
As you can see, we have the start of the FED meeting today, and we are at an interesting point, where by the FED have not raised rates for about 8 or so years!!! So that will be interesting to see what happens there.
So far the SPX is about 180 points off the lows back in AUGUST, and we are currently in a triangle pennant pattern that has not broken out yet. So time will tell what happens, but as a best guess, is that the next few days, and especially on THURSDAY when the news and FED annoucment comes out, would probably mean there would be huge and volatile moves coming. So trade carefully out there.
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