Markets Stagnant Ahead Of FOMC

FUNDAMENTAL ANALYSIS
Markets were sideways today ahead of the FOMC release as usual on below average volume. This is a tradition all investors seems to obey so far, no matter how predictable the actions by the Feds may be. Not even the drop in oil price manage to pump the markets up. Well, tomorrow is going to be another thinly traded sideways day until the Uncle Ben announce another rate pause this Wednesday. The economic data so far still suggests a balance between inflation and economic growth. This makes it extremely hard for Uncle Ben to raise or cut rates. Let's continue to wait and see.

TECHNICAL ANALYSIS
Markets are sideways today on low volume. This suggests that the 5 days rise is coming to an end. In relation to the secret bullish channel as shown in the picture below, it seems a little early to start a retreat back down to the bottom of the channel but it can happen as such channel analysis are never a precise science. Technical traders always read what the market is doing now instead of sticking to prediction. If the Dow should correct slightly now, it would test the bottom of the channel at about 12400, failing which, we should see a testing of the 12250 support level next. Markets remains uncertain but slightly inclined to upside.

Technical Chart By Worden Brothers TC2007 Charting Software
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