The Week Everyone's Waiting For...

This is the week every investor is waiting for... the FOMC WEEK!

This is going to be a dangerous week too... we all know that the best way to solve the current credit crunch is by lowering Fed Fund rate so that less mortgages will go bad and then more mortgage companies can survive. We also know that there are strong indications that the Fed will do that before September. HOWEVER, what we do not know for sure is, is the Fed going to cut rate during this week's meeting? A rate cut this meeting will definite set the bulls rolling. If the Feds should hold rates steady again, it will disappoint A LOT of investors. Seriously, the Feds are still extremely uncertain about cutting rates this time round.

Technically, the Dow has reached the 30MA resistance level I mentioned last week at last and coincidentally, it looks like the FOMC release is going to decide if it will break this level or not.

Monday is expected to be another slow day as investors await the FOMC release on Tuesday. Let's sit tight.