Good Morning Traders!
Pre FOMC meeting in the morning session was one of the duller sessions but the market more than made up for it in the afternoon. SP futures and the Dow tested above the previous all time high while the SP cash fell pennies snort. 34 points UP off the previous days low was just too much to sustain, though, and some give back occurred going into the close. The Russell, however, remains in an up trending channel, and the index futures are expected to retest back up Thursday morning.
The grains are deeply oversold, and Beans, Corn and Wheat are due for a 1-2 day reaction to the upside. The Wheat had an outside?inside Day formation and so can break in either direction. Should it rally, the two day high is the test objective to play for. Sugar finally had an oversold bounce, and a 50+ point range shows that sometimes these short covering rallies can still have quite a bit of play. Any further up is a Short op for a reaction back down. NOTE how the upside breakout came after a classic three bar triangle.
I believe that a Scottish vote of NO for independence is priced into the market and so is a moot issue. There still can be some reactions in either direction to the posted outcome on Friday morning. more importantly, triple expiration is on Friday and there tends to be an upside Bias into this event as OEX options can get exercised into cash.
Nice to have such good trading volume back!
Good trading! Linda
Markets in BO mode: