FED DAY

By: Scott Redler

The S&P struggled with the upper end of its channel once again–1,115-1,119 has kept a lid on this market lately.

Sector Rundown

• Oil is having a feeble bounce–it has a bit more room to go. The OIH has held the $110 level and is now testing the downtrend area around $118-119.

• GLD has a very tight pattern–we are now in Tier 2 with an average cost around $110.44. The next few days will bey very interesting as to which way this range resolves. Will we get $1,040-1,080 to add into Tier 3? $106.50-107.50 (GLD)–or will we break above the mini downtrend line at $1,140–$111 in the GLD–and give us a move back to $114. I am focusing in on this trade.

• Tech continues to rotate–I AM VERY FRUSTRATED WITH AAPL–I apologize, as every time I try to anticipate a break of the downtrend it stalls and I lose money. Yesterday’s action alert did not trigger, but my tier one feeler still hurt. AMZN is desperately trying to hold $130. RIMM was a nice focus buy on the morning dip. BIDU still needs time and a good opening at new highs.

• Banks remain the problem–GS is almost as frustrating as AAPL–watch yesterday’s low for support. All of these money raises are not accepted by the market with praise. Maybe they are “lulling everyone to sleep” here. BAC is still hovering around $15. Citigroup is obviously having a hard time pricing–it was supposed to be $3.75, then $3.50, now it’s looking more like $3.25.

• Casinos look ok.

• Solars have been strong–lots of mini trades within the group, but nothing larger.

Today’s Fed language is VERY important, although usually the day after Fed provides for a better trading day.