Looks Like the Market Wants to Rally Into the Fed Decision

Looks like at this point the market is believing in the Fed as knight on white horse scenario. Remember that ugly job's report? Well the market has already forgotten. SP500 is exactly where it was Thursday at the close before the jobs number Friday morning. Quite amazing.

That said, SP500 is right at the resistance of the 50 day moving average, 1480. This appears to be the line in the sand. If this level is breached, the market could take off going into the Fed decision next Tuesday. While nonsensical on a fundamental 'logic' basis, logic and the market many times diverge so to 'fight the tape' is a losers proposition. It's better to be rich than abstractly correct ;) If these resistance levels are broken, you just have to take off your short bias for the near term and turn into a bull as that's "what everyone else is doing". Standing in front of a freight train usually doesn't do anyone any good. With that said, I'm still not a believer until I see these levels broken with conviction.

So let's see how the SP500 does with this 1480 level. DJIA has a similar setup, right at resistance at 13,350. NASDAQ is the only one of the 3 which has broken resistance as the hot money has churned into tech stocks the past few weeks.

Russell 2000? Fuggedaboutit. Oh yeh, that death cross I keep referencing? Well the Russell 2000 just formed one with the 50 day crossing below the 200 day. Not good. The flight from small cap to large cap continues, reversing a scenario about half a decade in the making. Safety in large caps. Safety in stocks with large international exposure.