Tuesday Market Wrap-Some Fed Thoughts



{+++} I don’t know what the Fed minutes will read like tomorrow, but bond traders obviously covered some shorts today as the 10 year yield came down today and closed bearishly. That tells me there is some doubt that the Fed may not taper as soon, or as much, and that much of this incessant chatter about tapering is already in the market.

For the day the SPX/DOW were mixed, and the NDX/NAZ were +0.55%. Bonds gained 19 ticks, Crude lost $1.80, Gold added $4, and the USD was lower. Medium term support remains at 1628 and 1614 pivots, with resistance at 1680 and 1699. Tomorrow: Existing home sales at 10:00, then the FOMC minutes at 2:00.

The Dow Jones is still below the 50 day and so is the SPX so not much will happen until that hapens on a closing basis.

The Nazzy still looks very vulnerable and the QQQ is in a 3 day bear flag for now

Bottom line, today’s action was still lousy. My gut says we are ready to turn higher soon, but we may see some¬† some chop until 2PM tomorrow. August and maybe even September may be rough but this market will still go to big new highs this year in my opinion. I still think SPX 1775 is doable.

I added YELP back on the list as a long today. I like how its acting, but honor the stop.



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