Signal Strength Improving

Interesting start to the day...

Just an update…

Coming out of the weakness last week, we’re seeing strength and a little uptick in volatility heading into the two-day Fed meeting that kicks off tomorrow. Given the track record of pre-market moves, it wouldn’t be shocking to see there be a pushback to the 20-day by the Russell 2000. The S&P 500 is firmly 1% back above its 20-day moving average - and moving into equilibrium ahead of the event.

Sectors in rebound shape include biotech (many outlooks are bullish on the space in 2025), retail, and cyclical names.

This week, the Fed’s forward guidance and news around the Bank of Japan will dominate news and sentiment. We’ll look at the 2:35 period for direction for the S&P 500 (hoping upward), followed by the possibility of profit-taking in the final hour of Wednesday’s trading session.

We’ve seen this play a few times in the last 24 months.

Just be patient… we’re entering a historically bullish time for the markets (heading into the inauguration and Christmas season).

Howe…