The futures market got a huge pop after the close on Tuesday after Turkey hiked its overnight interest rates with the Dow futures up over 80 points. The blue-chips had settled down before the European markets opened but were still up over 60 points ahead of this morning’s open. However, Dow futures were the exact opposite as they made a triple-digit move before Wall Street’s open and were down 60 points as we went to press – and got progressively worse.
The indexes fell hard at the open and have recovered somewhat as they are holding the next wave of downside support ahead of today’s Fed decision on interest rates in a couple of hours. The news will likely have a big impact on the close.
As we make the turn, the Dow is down 133 points to 15,795 while the S&P 500 is lower by 10 points to 1,781. The Nasdaq is declining 22 points to 4,075 and the Russell 2000 is off 7 points to 1,131. The S&P 500 Volatility Index ($VIX, 17.19, up 1.35) is soaring 9% and has traded back above 17.50.
The 2 numbers we are watching this week are S&P 1848.36 and Dow 15,703. A break above or below either of these numbers could set the next MAJOR trend while anything in between keeps the trading ranges intact.
We will cover the importance of the 2 numbers in the Weekly Wrap Sunday night and for the Daily Monday morning. In the meantime, we have a New Trade we are recommending as we continue to build our next “batch” of trades.
Our last wheelbarrow of trades from November and December has allowed us to cruise to a fantastic January as we have gotten off to a sweet 15-1 start but we mentioned February is a tricky month to trade so we still need to be careful.
While it is never easy to call a market top, the current action is pointing towards some big paydays for us if there is a continued pullback. We still have to be patient as we have seen the bulls resiliency shine time after and time.
Subscribers, check the Members Area for the updates and stay locked-and-loaded into the close as we could have additional New Trades and/ or Profit Alerts.
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