Volatile Trading in Equities Ahead of Today’s FOMC Statement
Following a weak opening, the equity markets have rebounded. However, the volume ratios are neutral for the NYSE and slightly negative for the NASDAQ. Therefore, I would look for a slowing market ahead of the FOMC announcement.
The late-morning RSI readings from the CQG Custom QuoteBoard, using 15-minute bars for the equity derivative products are indicating minor upside momentum for the E-mini S&P (EPH7), the NASDAQ 100 (ENQH7) and the Dow (DJI). The RSI for the DJ Euro STOXX 50 (DSXH7) is neutral.
The Q.NYSEVolRatio and the Q.NASDAQVolRatio are flashing neutral readings.
The MACD and the RSI reading for the CLEG7, Crude Oil for February traded on Globex, is indicating a short-term up trend.
The RSI for Gold (GCZ6) and the MACD action is indicating a short-term up trend.
Yields are down in the Treasury market today.
The EUR/USD pair is trading with upside momentum based on the MACD and the RSI reading.
The chart of the S&P 500 and the NYSE volume ratio on a 15-minute basis shows heavy selling at the start of trading, but the S&P 500 did not break support and the market recovered. However, at this time, the volume ratios indicate buyers are not following the market higher despite the S&P 500 taking out yesterday’s high.
The price action of the NASDAQ 100 and the NASDAQ volume ratio readings are caught in trading ranges. We see the price action breaking the first level of support, but not the second support level. The market rallied towards resistance, but the volume ratio cannot break above 50-percent up volume. Trades and investors seem to lack confidence in technology.