Well, after recovering from the “great plunge” of last week, investors are now clearly on a wait and see mode, on the sidelines, not really risk on or off. The reason is clear, tomorrow the market will know what were the FED board members thinking at the last meeting, which I recall, the outcome was less dovish than what traders expected, including two dissidents that didn’t want to lower rates, let alone to implement a quicker easing cycle, like Trump is demanding and as investors are counting on, if we take into account the CME Fed Watch Tool.
So, today the market is trending sideways with a very small negative bias, but one cannot give too much credit to what Wall Street will do today, especially knowing that energy was the big driver of the last day’s recovery. Be prepared for some heavy volatility arising from the minutes, don’t forget that much has changed in the market sentiment, since the meeting.
