The Fundamentals:

- The Durable Orders report for December will be reported at 8:30 ET. This release measures the dollar volume of orders, shipments, and unfilled orders of durable goods. It's considered to be a leading indicator of manufacturing activity and is often market-moving, despite the volatility and large revisions that make it a less than perfect indicator. (Briefing.com)

- The FOMC is meeting today, and is set to talk at 1:15 central. The stance of the Fed is that they do not expect to change the interest rates for some time, any change of this bias will have a big effect on the market, so the market will be eager to see what the Fed says today.

The Reports:

- Dec Durable Goods 7:30

-Dec New Home Sales 9:00

-FOMC meeting Rate Decision 1:15

The Technicals:

The short-term trend is arguably sideways as we closed between the 1142.00 and 1147.00 trend area. The intermediate trend remains higher. A close below 1142.00 moves the short-term trend lower, and a close below 1137.00 moves the intermediate trend lower. A close above 1147.00 moves both of the trends to the upside.

- The market consolidated yesterday as it had an inside range trading day. I will look for the marke to consolidare for most of the day today, as the market awaits the FEd announcement.

The Long and the Short of it:

Today should be a good test of the recent higher levels in the market. With the fed's announcement set to come out in the early afternoon. I expect the market to consolidate as the Fed announcement approaches, and a breakout is likely if the fed waivers from it's previous stance. I only knew which way it was going to go. I am going to play it safe today, and hold from buying until the S1 level is tested 1138.50, and I will hold off from selling until the R2 level is tested. 1158.25. Today should be interesting so be careful out there!

Good Trading!

Michael A. Cavanaugh
My Futures Online
mike@fcillc.com
1-888-942-7829

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