The markets are trading slightly higher today as they await word from the Federal Reserve on interest rate policy.  The markets jumped higher early this morning as the dollar dropped sharply.  However, over the last hour, the markets have started to gently fall back.  The SPDR S&P 500 ETF (NYSE:SPY) is up .40% on the day.  This is after it hit a new 52 week high around 11:30am ET. 

The dollar dropping has caused solid gains, not only in the markets but also in oil and gold.  Both are having solid upswings.  While the markets are higher, some leading stocks are having trouble today which makes me cautious ahead of the FOMC Policy Statement and in the coming days.  This could spell trouble on this options expiration week.

In general, if oil is higher Exxon Mobil Corporation (NYSE:XOM) is higher. However, that is not the case today.  Exxon Mobil is flat on the day which is very strange considering oils move.  The stock was lower yesterday as well when the markets ended flat.  It appears to be under quite a bit of resistance over the last few days.  As a market leader, this needs to be watched carefully.

While Goldman Sachs Group, Inc. (NYSE:GS) is higher on the day, the other main financial leader, JPMorgan Chase & Co. (NYSE:JPM) finds itself lower on the day.  It is down about .50%.  This stock is notorious for leading the market higher and must be watched closely as well.

Lastly, Apple Inc. (NASDAQ:AAPL), the tech leader and top dog in the space finds itself flat on the day.  In addition, Apple did see a harsh pullback yesterday before it rallied back slightly in late trading.  Another leading indicator of something to come?

The leaders in the oil, financial and tech space are all relatively weak on the day.  This continues to alert me to be cautious in the coming days, especially today, prior to the Federal Reserve announcement at 2:15pm ET.  For further coverage, calls, guidance and education, join the Research Center at InTheMoneyStocks.

Gareth Soloway
Chief Market Strategist