Good morning. Happy Wednesday. Happy Fed Day.
Today Ben Bernanke and Co. target the overnight rate and set the discount rate. The rates can’t be lowered, so the only question is whether they’ll be raised or not. They won’t be so – at least that’s what everyone thinks – but the language they use in their statement will be closely analyzed. Will they start talking tough or will they let it be known rates will be kept low for a long time? This could be a market mover. The bulls are on thin ice here, and the bears would love a reason to press the issue on the downside. But the bears have been wrong a few times during this rally, and the trend is still up (on the daily chart). The market’s reaction will be important, but more important will be the market’s reaction tomorrow because often the post-Fed move is reversed the next day.
Here’s that SPX 60-min chart. It’s been range bound for almost 8 weeks.
That’s it for now. It’ll likely be a slow day until the 2:15 pm announcement. I’ll post more stuff on the Market Window as the day rolls on.
OT ->> Go Longhorns!!!
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