FOMC Preps

S&P 500 had a relatively uneventful session, but still managed to close up on improving market breadth – all without XLF taking part. Bonds were likewise bought, earnings announced good, and now the wait is on for AMD, AMZN after the close Tuesday. AMD is likely to disappoint, but the same can‘t be said about KO already in. The dollar also faces trouble pushing higher – will the FOMC just be a repeat of Powell sounding a dovish tone in Mar? For all the contradiction of several board members and difference of opinion with Larry Summers, I think so.

 

S&P 500 and Nasdaq Outlook

(Click on image to enlarge)

S&P 500 and Nasdaq

Expect some false breakdowns and breakouts before FOMC, but the slow crawl higher with flushes being bought, is sending a clear message – I‘m leaning towards not truly hawkish Powell tomorrow. Trading range before then. Employment cost index is a bearish stunner, but I‘m looking for the dip to be bought, to a degree already today.


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SarahWilliams 6 months ago Member's comment

Nice.