- Asian markets traded flat.
- European markets are trading 0.9% lower.
- US futures are trading 0.3% lower ahead of the market open.
Economic reports due out (all times are eastern): MBA Purchase Applications (7), Consumer Price Index (8:30), Current Account (8:30), EIA Petroleum Status Report (10:30), FOMC Meeting Announcement (2), FOMC Forecasts (2), Yellen Speaks (2:30)
Technical Outlook (SPX):
- SPX cotninued another heavy day of selling for the sixth time in the last 7 trading sessions.
- Some support rests at 1953.
- Stochastics show extreme oversold conditions.
- We are at a point where you can expect a dead cat bounce that can last 2-3 days.
- T2108 dropped another 9.6% down to 26.86 yesterday (% of stocks trading above 40-day moving average).
- VIX rose 15.4% to 23.57.
- SPX 30-minute chart head-faked traders when it broke 2002 and put in a higher high, only to immediately retrace those gains.
- USO had an extreme volume reading which can often times mark a significant bottom on a downtrend.
- FOMC Statement today, so be prepared for increased volatility, as the markets will look to Yellen for some kind of confirmation of continued dovishness.
- The market doesn't care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up.