News:
Markets moved sideways yesterday as the Fed began its two-day FOMC meeting.
At the close, all of the indexes were in positive territory. The Russell 2000 led the way with a gain of 0.8%.
Earnings reports continue to pour. Some positive like Advanced Micro Devices (AMD) rising 6% on a positive report.
But disappointing earnings have led to big declines in stock prices. For example, Lyft (LYFT) is down more than 25% in pre-market trading.
Technicals:
The put-to-call ratio is oversold for a 9th day, as investors continue to bet against the rally.
The VIX reached resistance at fell back to a more normal level. See the chart below…
We can look at charts all day but the real story is in today’s press conference…
Timing:
Fed Chair Powell is scheduled to take the stage at 2 p.m. and deliver the latest interest rate hike. The market will try to figure out what’s in store for June’s meeting.
Today a 0.5% increase is expected.
I expect some volatility afterward 2 p.m. The close will provide a better signal of the market’s direction.
Watchlist:
*Low Float
^Open Position
^*RCMT is on watch
*HCDI has support at $3.20
CVI has support at $29
NKTX has resistance at $20
SGML has support at $16
TWI has support at $5.50
^REI has resistance at $5
BORR is on watch
ARLP has support at $17.50
TTI has resistance at $4.50
^CXW has support at $12 and resistance at $13
CC is on watch
^DVN has resistance at $65
SU has support at $35
EDU has support at $12