FOMC WEEK!

It's FOMC week once again (see economic calendar)! :)

Why am I so happy? Well, because its real exciting to see what the Fed is going to do this time round. Its really going to be a tough decision to cross the 1% line and I think the Fed is going to hold rates steady this time round. I mean, why keep cutting rates when the effects of the previous rate cut has yet to filter into the economy in the first place? The Fed certainly isn't using monetary policies for the sake of the stock market, that's for sure.

On the technical front, the Dow has found excellent support on its monthly 200MA and has really moved sideways since October, establishing an intermediate neutral trend. Lets see which way this neutral trend breaks out to eventually. Personally, I see a much greater chance of a bullish breakout than the neutral trend we got back in July - September because there is obviously a lot more buying at this level than in the previous neutral trend.