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Wednesday, January 27, 2010

Ahead of the Fed




It's a Fed day. The markets are technically short-term oversold but extremely skittish. Obama delivers the State of the Union address tonight. It is the height of earnings season. Steve Jobs unveils "the next big thing" this afternoon. Washington is in even more turmoil than usual, and Bernanke's pending re-appointment is running up against resistance. Are you really sure you want to be trading today?

While ricochet market moves are a standard response to the 2 p.m. policy announcement, it may be particularly prudent to buckle up this time, if not sideline entirely until things have settled out. Volatility may be a traders best friend, but erratic volatility can be dangerous. Be careful out there today.









There is decent &SPX support in the1080 vicinity to keep an eye on as a level where a short-term bounce could get underway today or tomorrow.

Trade well.

-Brinkley
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