April 28, 2008

Quiet day on one of the weakest volume days of the year as investors are staying on the sidelines until the FED makes their interest rate announcement. It is widely expected that the Fed will cut by a quarter of a point, which means that market reaction will likely be tied to the FOMC statement that accompanies the rate cut. The indices are consolidating in a tight formation, with little volatility, which is very bullish, as is, the market refusing to sell-off or pull back despite lingering in overbought territory. Should the Fed give the market some good vibes, we could see a solid breakout of the current price range that we are in on Wednesday

Let’s look at the NASDAQ and S&P charts…