Today's Comments (Short Term Outlook)                             Printer friendly

FOMC Tomorrow Stocks were mixed yesterday during light trading in front of Wednesday's FOMC meeting.  Large cap stocks were not able to hold on to earlier gains, while small cap and international stocks ended the day up modestly. The S&P continues to flirt with resistance, but remains resilient in spite of it.  I don't like to buy overbought conditions, but the fact that the market is holding up, it is a good sign for the longer-term.  The short-term could see some digestion of the recent rally, but that could be setting up another buying opportunity, particularly if the Fed is friendly tomorrow.                         Charts provided courtesy of www.decisionpoint.com - with analysis by TSP Talk What the Fed does on Wednesday will be accompanied by it's share of volatility with knee-jerk reactions, but if they don't give us any surprises, it could be an all's clear sign for stocks.  I hate to be a buyer just under this resistance so I am in no big hurry to do any buying, but buying dips could be more appealing if the Fed is not worried about a slowing economy or inflation.  But that remains to be seen. The first few days of May have a strong positive bias, but the month is not one of the better ones historically.  May starts the weaker 6-month historical period of the year.                               Chart provided courtesy of www.sentimentrader.com Regardless of whether they cut rates or not this week, I want to hear what the Fed has to say in their policy statement before making any new decisions.  That's all for today.  Thanks for reading!  See you tomorrow.                Have questions?  Visit our message board for answers.  Would you like to be on our email alert list?  We will send you an email when there is a change to our asset allocation or market outlook.  Your email address will never be given out.  Read our privacy policy.  By signing up you agree to the TSP Talk Terms of Service.  More details below **. Are you bullish or bearish?  Join the Weekly Sentiment Survey. Like what you're reading?  Tell a Friend about us. ------------------------------------------------------------------------------------------------------------------- ** By joining our email alert list you will receive an email each time we initiate a transfer or change our market outlook.  You may also receive an email each Monday morning reminding you that our comments are updated daily.  We will always send out these emails prior to making the transfer myself but we can not guarantee you will receive it in time to make a transferide to follow our transfers in your own account, you do so at your own risk.  There is always a possibility for a loss in your account.  These transfers could come very often and you may have to act quickly to make the deadline.  Please consider your investment strategy before taking any advice or making any transactions.  By reading the contents of TSP Talk.com and accepting the email alerts, you must agree to the Terms of Service.  Thank you. TSP Talk