The open is strong, with advancers over decliners by 3 to 1 on the NYSE and almost 4 to 1 on the NASDAQ. Still, we are encountering resistance at the S&P 500 Index Futures overnight high, with support at yesterday’s high.
There was no immediate gap-fill, which was positive, but we may yet see the fill as we did on the mirror image of today occurring yesterday. It is not surprising to see the market tentative with the Fed announcement looming, but the market needs to hold yesterday’s high by the close to have a confirmed pivot higher in the cash session.
For now, technology leads this morning.
The NASDAQ 100 leads the indexes.
Keep in mind that there is still short-covering today, which might distort fund flows. The follow-through rally after a low retest is where the fund flow picture typically gets clearer.
Anyway, this could be a long day. I will comment as needed – but most of my commentary will be reserved for the Fed post-mortem later today.
A.F. Thornton