April 29, 2008

Once again investors are weary of putting any money to work ahead of the Fed meeting tomorrow as the indices traded in a sideways fashion. With that said, expect tomorrow to also be especially quiet heading into the announcement. However, once the news hits the wires, computer buy/sell programs will most certainly kick-in and the market should jerk around some before eventually settling down and eventually deciding on its direction for the day’s duration. It is widely expected that the Fed will cut by 25 basis points, and we at Shareplanner don’t expect any differently. The market’s direction will more than likely be tied to what the Fed says in the FOMC statement. Remember trying to jump in ahead of the Fed can be costly – Do so knowing the risks.

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