All three majors continued higher as we move into tomorrow's FOMC statement. This is the last scheduled FOMC announcement for 2016. The market is expecting a raise of 25 basis points (0.25%).
Market sentiment has been primarily bullish for over a month now, as the charts continue to break through resistance levels. Any change to interest rates will have an impact on the markets. However, the economy remains strong and a higher interest rate increases the strength of the dollar moving forward.
The markets, along with the U.S. Dollar, have been moving higher for some time now. This action supports the idea that investors are expecting a rate hike tomorrow. Regardless of the Fed's action tomorrow, we will see a reaction. Be mindful of support and resistance levels, as it will definitely take more than one day for the markets to stabilize.
December's option expiration cycle is this Friday, which could make things difficult when entering new positions moving forward. Keep to the current market sentiment and follow your plan.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
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