BRIEF COMMENT ON THIS WEEK'S FED MEETING AND THE BROAD STOCK MARKET (4:00 pm EDST)
This week the Federal Reserve wraps up another FOMC policy meeting on Wednesday. Many investors and analysts, taking their cues from recent dovish rhetoric from the Fed, seem to be waiting with "bated breath" for the first interest interest rate cut in over a decade. Some are even speculating that could come as an announcement on Wednesday after the FOMC meeting. Anticipation of a cut could fuel a rally in equities into Wednesday, but if the Fed doesn't deliver, we could then see a sharp fall in the markets. Since this would be within our current strong reversal zone, it could be the trigger for a significant correction down. We will be watching this situation carefully on Wednesday.
This week the Federal Reserve wraps up another FOMC policy meeting on Wednesday. Many investors and analysts, taking their cues from recent dovish rhetoric from the Fed, seem to be waiting with "bated breath" for the first interest interest rate cut in over a decade. Some are even speculating that could come as an announcement on Wednesday after the FOMC meeting. Anticipation of a cut could fuel a rally in equities into Wednesday, but if the Fed doesn't deliver, we could then see a sharp fall in the markets. Since this would be within our current strong reversal zone, it could be the trigger for a significant correction down. We will be watching this situation carefully on Wednesday.
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