Major stock indexes are higher in early trade after President Obama announced plans to set up a governmental “bad bank” to absorb toxic investments, sending banking shares higher. The Federal Deposit Insurance Corp. is said to be the likely manager of the plan. After two higher closes in a row, S&P 500 futures look to be forming a bottom, said Lind Plus Senior Market Strategist Blake Robben. He said a look at the 10-minute cash S&P chart projects a possible move to 890 by next week. However, a close under 832 would cause him to rethink his analysis. March S&P futures were last up 22.80 at 862. Blake can be reached at 800-266-0551 or via email at BRobben@lind-waldock.com for further market analysis.
The Federal Reserve ends its two-day Federal Open Market meeting this afternoon. Expect an announcement on interest rates and the economy at 1:15 C.T., which could prove to move the market into the close. There is no change expected from the 0% – 0.25% current target rate, but market participants will be looking for any fresh insights about the economy and any future measures the Fed may take.
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