20 September 2011

SP 500 and NDX Futures Daily Charts - Reversal Ahead of the Fed



Stocks were rallying today, when fresh jitters about a Greek default caused the afternoon trade to turn south, finishing almost even to slightly in the red.

I suspect quite a bit of that selling was due to traders squaring up their positions ahead of the big Fed announcement tomorrow.

Expectations of some action from the Fed are high. Reassuring words alone will not sustain the equity markets. If the Fed does nothing we might see stocks sell off badly.