The market is definitely pensive ahead of the FOMC. While the indices are lower, they have rebounded from the lows that tested the 10 day EMA (SOX), 20 day EMA (DJ30, SP500, NASDAQ), or 50 day MA (SP400), and rebounding off those lows, showing again a nice doji test of support.
SP500 -8.44, -0.36%
NASDAQ -18.51, -0.33%
DJ30 -42.80, -0.20%
SP400 -0.36%
RUTX -0.44%
SOX -0.30%
The FOMC issues its latest edict Wednesday afternoon, but worries about the Trump agenda and lower and lower GDP revisions is blamed for the sloppy stock trade.
There are more calls the market is set to fall, today Mr. Robert Shiller showed his nervousness wondering why stocks are "so un-volatile right now."
Well, there is that saying quiet before the storm, and many are assuming the storm is lower. It could be, but for now we still see indices that test near support and find some bids, and a good swath of stocks still in very good patterns. Not the best day today, but many good stocks are holding near support if they are testing.
Often there is a move higher toward the FOMC result. Of course after that, volatility, but if no surprises, the market typically handles it.
Looking at CALD and WEB as entries; will see how they hold. On those stocks that are weaker, many are holding support well enough to let them work.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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