Market Alert - Pre-Market

Futures vs FV: SP +0.83; DJ +8.2; NADSAQ -2.08

A low to high move on futures, trading in a range the past three hours. NASDAQ is lagging; makes sense as NASDAQ has lagged of late. Outside of that, the same action remains: DJ30 moving higher, SP400 and RUTX moving higher, SP500 dealing with upper trendline, NASDAQ trying to find bids once more.

FOMC is of course the main item of consideration with this afternoon's meeting and Yellen press conference. This has the potential to be the catalyst for the fade off the rally to new highs. Based upon the market pattern, this rally is closer to its apex than midpoint. Of course, the success of the move has many talking about avoiding selling this time.

That is hopeful, but perhaps not realistic given nothing has really changed in the economy or market and thus the algorithms are likely operating in the same manner. Also, if the Fed reiterates its tightening bias and actually says it will reduce the balance sheet starting October, that is a tangible tightening.


Mortgage Apps: -9.7% last week. Storms, higher rates blamed.


Beats: FDX but warns and blames storms, hack for not as great as it wants to be. ADBE but a mixed outlook

Misses: BBBY (BL, missed same store sales)


Holidays: Deloitte says +4.5% in spending overall, online +18% to 20%.


WSJ: Asks why was FBI spying on main presidential contender based upon Russian misinformation? In other words, does the FBI know which end is up? Comey makes it look as bad as agents Johnson and Johnson in 'Die Hard.'


OTHER MARKETS
Bonds: 2.234% versus 2.246%. Up a bit ahead of FOMC decision

EUR/USD: 1.1993 vs 1.19954

USD/JPY: 111.41 vs 111.539. Off even when FOMC expected to announced its balance sheet reduction.

Oil: 49.93, +0.48

Gold: 1315.20, +4.60


Futures are decent enough. Expecting a bit of upside build toward the FOMC. After that it depends on commentary. Of late stocks have moved higher post-FOMC decision then struggled next session. We may use any upside to take some gain.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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