Wednesday September 18, 2013 10:30
The breach of $1,307 overseas created the suggested immediate move to $1,292 overnight. For aggressive traders, the breach created a quick $15 return, in lieu of sleep. The market is pointing heavy but I stick to my suggestion that the trend, once clarity is evident, will have some legs and being flat ahead of this afternoons announcement is advisable. The surprise will be to the upside if Bernanke disappoints with no tapering. Much of the downside is factored in, on a modest taper, albeit a knee-jerk reaction remains on the table. I suggest a $1,292-$1,307 range until the European close, with some volatility as traders react to the talking heads, before the Fed announces.