Fed comments could be the catalyst for a big move

Charles Sachs has utilized S&P 100 for the past 14 years, both as a trader and an advisor. He uses 24 proprietary indicators in order to structure options strategies which can generate gains whether the market moves up, down or sideways.

** FEDERAL RESERVE MEETING TODAY AND COMMENTS THEREAFTER LIKELY TO BE A CATALYST FOR A LARGE MOVE IN THE STOCK MARKET **

As of 8:00 a.m. est., financial markets are set to open higher with the S&P 500 futures trading up 4.0 points, which is 6.0 points above fair value.

The short-term market trend is down, and the intermediate-term market trend is up.

The S&P 100 index (OEX | Quote | Chart | News | PowerRating) traded higher on Wednesday up 3.05 points to the 570.88 level.

As seen in the chart below, the S&P 100 index has traded in a very narrow range for the past 2 weeks between a low level of 566.99, and a high level of 576.35, or a total range of about 2%.



The S&P 100 continues to vacillate above and below the 568.76 level, which had been the index’s prior yearly low going back to February of this year. It remains my expectation that the index is likely to break out of its narrow trading range shortly. Today’s released comments from the Federal Reserve should be the catalyst to that move.

Bottom Line:

Financial markets are in a consolidation phase of a downtrend that began in the beginning of May. The direction of the next move in financial markets, whether up or down, is unclear but likely to be significant. Today’s comments from the Federal Reserve should be the catalyst for that move.

One other note: I will be giving an online options seminar today at 11 a.m. EST. to discuss more fully the proper approach for trading options.

Sincerely,
Charles Sachs
Editor
www.PatientTrader.com