Indecision

4/29/08

Today's action is pretty much same as yesterday, not much volume ( In fact, these two days are the least volume trading day since year-to-date). Major indices are holding in steady but start to sell off some after 2:30pm central time. Today's star is MA which posted solid earning and MA is trading uncharted territory which carry V into sky too. Investors/traders are all waiting tomorrow Fed rate decision and that maybe the catalyst to push market higher. This rate decision is by far hardest to predict by many economists. But the Fed statement is way much important than no rate cut or quarter point cut in my point of view. Also, market reaction after the meeting would prompt the recent rally is valid or not. All major indexes are in resistance zone and it seems ready to breakout that zone and break the primary downtrend draw back from 10/2007 (especially the S&P index). Tomorrow GDP number in the morning properly will not affect the market too much unless that number is far from the estimate (+0.5%) for first quarter of 2008 (since its past already and a laggard indicator anyway). Let see how the market turn out.