The stock market is mixed 30 min before the open. QQQ leading the way on the plus side and SPY slightly positive. DIA and IWM hovering just below break even.
Of note TLT down over 1%. Financials positive. Oil off sharply. Metals lower.
To me, this looks like a slight bias to the upside premarket. But one could also make an argument that it is negative:)
A lot going on right now. Fed day today, so at 11 we get some word from the Fed as to there thoughts on the direction of interest rates. Expectations are that nothing will be done by the Fed so it will be the language they will be looking at going forward.
Apple came out with earnings after the close and it was very positive. Whether this is enough to turn the Nasdaq around remains to be seen.
The rebound we saw shortly before the open yesterday was a result of the announcement that China was going to get back into trade negotiations.
The key thing is that the bounce from that was not very big. In a bullish atmosphere, I would expect the dow to be +300 or higher with that news. But the stock market squeaked out a 100 pt gain. Not much to get excited about.
To me, we have more downside before this market turns around. I believe it will turn around as the economy just keeps getting better. The White House is creating a very positive environment for the economy. If they happen to reduce the Capital Gains tax we should get a big bounce from that also.
But in the short term, I would not be surprised to see the stock market make new lows for this move in the next few weeks.
A lot of this is contingent on the Fed. The White House came out and was critical of the Fed raising rates. If they stay on a tightening mode this could dampen market expectations.
I will post any trades I make on my private twitter feed @rickjswings.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. Typically I talk about the overall day expected with the markets and also give some levels on the ES and NQ for failed breakout scalping.
It’s my private twitter feed for the stock market and its free. Sports Handicapping is the subscription-based part of this site. But considering the cost of joining it’s almost free:)
Good Luck Today
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