Finally, the day we’ve all been waiting for. Will they or won’t they? Who knows? But, it’s pretty clear, from watching the talking heads over the past few days, what the script is: bring on the taper, but paint it as a non-event because the economy is strong enough to take it.
We can argue about whether the economy really is that strong, and whether inflation is an issue. But, there’s little argument that today’s decision will impact the markets. My expectation? Whether they taper or not, TPTB are standing by with buckets of cash to buy any dips that appear.
If you’re a bull, I wouldn’t worry so much about an immediate sell-off (though stops are always a good idea), but I would be concerned about what the market does after the cash infusion spike — especially if SPX tags 1823.
Tomorrow’s a big POMO day. But, there’s more to worry about than just tomorrow. As always, I’ll trade where the market is going, not where it should go.
US equity markets are relatively quiet this morning, settling a bit after fleshing out a triangle as expected.
Should get the announcement in a few minutes… Do or die time. Some targets in either direction…
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