Stock Market Gains Ahead Of Fed Release

FUNDAMENTALS
The Dow gained 61.93 and the Nasdaq composite gained 13.80 ahead of the FOMC minutes tomorrow, despite rising oil prices. I continue to look at this gain suspiciously as the incredibly low and declining volume tells me that this is not the works of the masses but of some systematic influx of funds from some very strong players. The masses continued to stay on the sidelines ahead of the FOMC no matter how predictable the outcome may be. These days, FOMC releases are becoming less and less speculative as we all know that it is not the time to hike nor cut rates. Even so, what many investors do want to see is a rate cut, so will a pause disappoint investors?

TECHNICALS
Tomorrow is the FOMC release and today, major indices are up against their respective, critical, resistance levels. Is this a coincidence or what? That completely puts us on the sidelines even in the technical analysis sense. I mentioned yesterday that the key to this rebound lies in whether or not the 12300 level is broken to upside with respectable volume. So, here we are right now and still the volume is declining. But such declining volume is natural ahead of all FOMC releases. That makes it extremely hard to tell the sentiments behind the "rally" so far and it is also hard to say that there will not be any mass concensus tomorrow after the Fed release. The "W" bottom setup continues to work its magic while we await the final judgment by the public tomorrow.


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