Dead Till the Fed – Wait For the Reaction and Keep Overnights To A Minimum

Posted 9:30 AM ET - The market tried to rally yesterday and when buyers ran out of gas the downside was tested. Trading volumes were low and we can expect the same today. We are "dead till the Fed". There is market support at SPY $212 and resistance at 215.50. No one is expecting a rate hike tomorrow, but hawkish comments could pave the way for a December increase. If this pans out, the market will not like the tone and we are likely to breach the 100-day moving average. September is typically a weak month and we could even test the 200-day moving average. If the rhetoric is more benign, the market is likely to rally. The market could go either way so I will keep my overnight exposure to a minimum and I will wait for the reaction. Look for dull trading this morning. When the market picks a direction and the momentum stalls, look for a reversal the other way. . .

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