Yesterday's FOMC: Reality Sets in for Stocks
Reality crashed the party with stocks yesterday, as we have been predicting here. The FOMC event was still quite hawkish despite the market's anticipation that we would see some softening in rhetoric. This caused stocks to tank yesterday, with the S&P 500 falling through multiple levels to find support at 3758. European equities have softened which could portend another dump for the NAM session today. Additionally, eyes are on the BoE and we will see if their outlook matches that of the Fed. If we fall further, we could find support in the upper 3600's, with 3645 a likely floor. A rally will have to claw back through multiple levels. We don't see a rally strong enough to break through 3909 any time soon. The Kovach OBV is still very bearish, and it will likely take a few days for the market to price in the Fed's decision.
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