FOMC Minutes Could Be Small Speedbump – Raise Your SPY Stop

Posted 9:00 AM ET - Yesterday the market staged a nice rally after a three-day weekend. The momentum clearly points higher and the price action will be bullish this week. This afternoon the FOMC minutes will be released. Improving economic conditions will be cited along with balanced risks. In a unanimous decision, Fed officials decided to leave rates unchanged. I believe the rhetoric will point to a June rate hike and the reaction will be slightly negative. Investors will not be overly concerned about a rate hike in June as long as economic activity is strong. Earnings season has been good. Without question Trump's policies are market friendly. Lower corporate taxes and reduced business regulations will boost profits. Tax repatriation for offshore funds would stimulate domestic business investment and it looks likely. The market staged a breakout three weeks ago and it was tested. Since then we have been in a nice grind higher on good volume. I believe we will continue to inch higher until the March FOMC meeting. Swing traders are making great money. We loaded up on the breakout and now we are riding the wave. Move your stop up to $235.00 on the SPY. If we close below that level, exit your long positions. Day traders need to be patient during the first hour of trading. Once the downside has been tested and support has been established, start scaling into long positions. The market will try the downside early this morning. Bullish markets are characterized by lower opens and higher closes. Overseas markets were mixed and support should be established early. Be careful this afternoon when the FOMC minutes are released. We could see a little selling into the close. Any dip this week will be brief and shallow. . .

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