Nothing Definitive Yet…..more
This morning’s market moves take most of the markets into easy resistance and support levels.Â The S&P and financial indexes have rallied into short-term resistance, while gold and oil have declined into minor support.Â After the so-called required reaction to the Fed statement later today and tomorrow we should see if something big happens over the next week, like a breakout towards $ 750 gold, $ 90 oil and 1320-1360 S&P.
As too what would cause a reaction, the Fed could surprise by raising rates by 1/4 point or in their statement mentionÂ that possibility soon. There is no question in our mind that the Fed Fund rate is too low at 2 percent, it helps no one but the banks and financial sector, not you and me.Â A more real rate would be 3.5 percent at this stage in the cycle.Â The Fed will need ammo when things get tougher than they are now.Â The possibility of them doingÂ this now is very low as they have had it wrong through this whole scenario.
9:44 AM CDT
more at 10:52 AM CDT
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