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.
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…
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.
^*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