SubscribeDaily Futures Commentary September 23, 2009
Wednesday, September 23, 2009
This afternoon the Fed will make its latest decision regarding interest rates and economic policy. Most investors expect the Fed to leave interest rates unchanged at near 0%. The debate is whether the Fed will maintain its loose monetary policy or if it will announce the end to its stimulus program. The Fed may announce it is ending its mortgage buyback program at the risk of destabilizing the markets or it may decide to extend the program beyond its October ending date.
U.S. Equity markets are called slightly better this morning. Although the overnight range was tight, traders provided a constant bid as they try to position themselves ahead of this afternoon’s Fed FOMC announcement. The December E-mini S&P 500 chart indicates that 1051.50 has to hold as support. A break through this level will turn the main trend down on the daily chart.
Treasury futures are called flat to lower. The recent weakness in the Dollar has been supportive for December Treasury Bonds and Notes. This is an unusual reaction since higher equity markets usually indicates weaker fixed income instruments. Traders will be watching the Fed …
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