Choppy Action Continues into the FOMC Statement

We had a mirror image of Monday’s action with the market opening up weak only to rebound into the close.  I expect that the market action will continue to stay choppy into the Fed Policy and Friday’s Employment report.

As I noted in the last few corners, Small-Caps ($IWM) need to be the catalyst if the Bulls are going to have a chance to really challenge uncharted upside territory.  $IWM had a slight gain at +.55 percent, and its large-cap brother, the S&P 500 ($SPY), finished the day with a +.32 percent gain.

If you have exposure to Consumer Discretionary ($XLY) or Retail ($XRT -.37 percent), tighten up your risk parameters. I do not like the weakness that we are seeing going into today and Friday’s events of the Fed and employment data.

The big story in the Tech space ($QQQ) is the downside move of Twitter, -18.18 percent. Social media was under pressure after this announcement ($SOCL -1.67 percent) as well as Internet Stocks ($FDN -1.19 percent). See if pressure builds on stocks like: Facebook ($FB -1.50 percent), Linkedin ($LNKD -1.13 percent), and Priceline ($PCLN -.88 percent).

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Have a great trading day!