We’ve had no economic news out yet today; the minutes from the September FOMC meeting will be released at 1 PM Chicago time. This will provide an insight into then Fed’s thinking at their last meeting-was that cut a “one and done”, or are they leaning toward more? Traders are obviously hoping for some clarification on this.
Following a relatively trendless start to the session, S&Ps have stayed within a defined range-1570 is psychological resistance, and Friday’s high of 1573.50 is next. Support is Friday’s upside breakout point of 1561. These also line up well with today’s Trade or Fade numbers (see below). I would use a breakout of R-1 or S-1 as a breakout trade after the release of the minutes, as the minutes have a strong chance of affecting trader’s percepetions of the Fed’s bias, and hence, market direction.
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Update:
Well, S&Ps did rally after the report. Nothing dramatic, but it made it worth watching the market for the last couple hours of the day.
