SHORT TERM: market starts lower as FOMC convenes, DOW -50
Overnight the Asian markets were mixed, and Europe came in about 0.50% lower. The stock index futures, which had traded lower most of the night, were not helped when Case-Shiller reported a decline of 4.4% in housing prices over the last 12 months. The largest drop since 1991. Then at the open stocks headed lower until about 10:00 when the SPX traded to 1531, right at the EW pivot. Bonds are flat, Crude is $1.60 lower, Gold is off $6.00, and the Euro is flat. Support for the SPX remains at 1530, with resistance at 1556 and then 1576. Short term momentum is declining after being overbought yesterday. At 2:15 tomorrow, the FED will release a statement and its determination on short term interest rates. We’re expecting, based on the indicator we’ve been observing, a rate cut of 25bps or possibly 50 bps. Also being reported tomorrow, before the market opens: the ADP employment report and Q3 GDP. The Chicago PMI will also be reported around 10:00. Best to your trading!
MEDIUM TERM: bullish, targeting SPX 1620
LONG TERM: bullish.