Good Morning. The Chairman himself speaks today, though no time or details were given. We are likely going to see the PR campaign kick into high gear. After all you don’t go all in on a highly questionable program and let people vote on its merits. There are none. Instead you work the media to explain why adding another few trillion to the balance sheet will work this time.
I want to take some time in this post and discuss the model further and what it is currently profiling. The table below has remained flat across most asset classes and I want to clarify why and where we currently stand.
First with the indices, we remain overbought and due for a pullback into support. The daily profile shows that probability favors the move post FOMC to be capped and a test of support most likely. Levels are roughly 1,435 on the SPX, 13,300 on the Dow and 840 on the Russell. But with that said, this market remains vulnerable to