A Rather Subdued Spectator-Filled Fed Day

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On days when The Fed makes an official announcement, you usually see more intense price action than what we are seeing today. That said, we saw a quick move lower after the headlines crossed this afternoon. Once again, the S&P 500 is flirting with that key 1230 level, this time around as support. The macro, inter-market correlations are largely intact, which is also likely putting pressure on equities too. In particular, bonds and the Dollar continue to be strong, while the Euro and precious metals are notably weak. The bulls, however, are pointing to a lower VIX as being a bullish divergence.

As a result of these continued mixed signals, I have been a spectator today. I already have a few trades on, running that long/short strategy, but I need to see the technical picture clear up a bit more before I make any further moves. I am still focused on cutting losses quickly and being open to both potential longed and shorts. As I write this, I see we marginally breached 1230. The bears want a psychologically-important close below that level, to be sure.

Get your popcorn ready…