What a volatile day! The markets had been moving in and out of red for the whole day in narrow range. It finally settled at a loss of 20 points for the Dow and 1.47 for the S&P. The bulls continue to be nervous. Now, the markets for the next couple of days are expected to slow as everyone is waiting for the FDA’s decision on rate cut. This time, no one is expecting a big cut from the Fed. Therefore, we can’t hope to see a major move in the markets.

Meanwhile, I am still watching the resistance level at 13150 for the Dow and 1450 for the S&P. These are the critical tipping points where either the bulls or bears will make a killing in the markets. From now until then, there isn’t much to expect.

If you are still holding any bullish position, you will find the market rather boring and slow. This is going to stay that way for a few more days, at least. Frankly, there is no incentive to go long with this kind of markets. If you are serious to want trade with high probability of profit, wait for a while first.

If you are options trader, I suggest Iron Condor for this kind of market. But make sure you wait until the Fed rate cut announcement is over.

DJIA Daily Chart

SPX Daily Chart

STOCKS TO WATCH:
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