The sun rose again, after the dramatic sell off yesterday.  The markets dropped over 2% on the back of ugly news out of Europe on Greece and Portugal while back in the United States, Goldman Sachs Group, Inc. (NYSE:GS) was getting grilled by the Senate on Capitol Hill.  The markets had their biggest down day in months.  Gold shot higher yesterday, regardless of the dollar soaring.  Usually if the dollar is higher, gold will be lower. However, the fear that swept through Europe and the steep selling in U.S. Equities, caused a run for safety in gold.  The SPDR Gold Trust (NYSE:GLD) jumped over 1.5% yesterday.

While fear swept through the markets, today, the sun rose again, the markets quieted down and all things seemed to be in order once again.  The markets are whipping around slightly, but generally holding the flat line.  It is extremely hard to kill a bull and the markets are now turning their attention to the Federal Reserve Interest Rate Policy Statement at 2:15pm ET.  Wall Street expects the Federal Reserve to sooth the markets fears with weak dollar policy which is extremely bullish for equities. Will they do it?

Goldman Sachs Group is seeing a solid move higher today, now that the grilling on Capitol Hill is over.  Goldman is higher by 2.5%.  In addition to the solid gains from Goldman, JPMorgan Chase & Co. (NYSE:JPM) is jumping almost 3%.  JPMorgan Chase and Exxon Mobil Corporation (NYSE:XOM) are leading the markets higher based on their inclusion in the Dow Jones Industrial Average (INDEXDJX: .DJI).  These two major components of the DOW 30 are key to the markets holding up.

Other Dow driving components up nicely today are Alcoa Inc. (NYSE:AA), American Express Company (NYSE:AXP), Bank of America Corporation (NYSE:BAC) and Caterpillar Inc. (NYSE:CAT).  Most of these DOW stocks took a major hit yesterday on the market drop.

Keep a close eye on this market.  We are in the middle of a massive new storm based on the European debt crisis.  It now looks to be spreading.  Right now the markets are holding steady ahead of the Federal Reserve.  Join the Research Center to get live in depth analysis, swing trades, technical analysis and more.

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com