After a quiet day to kick off the week, stock indices have been taking a bit of a dive today. The chart on the mini Dow appears to be a bit weaker than the mini S&P, and mini Nasdaq as that market was actually able to break below last week’s lows. The mini S&P looked as if it was going to do the same, but it ultimately caught some buying interest slightly above the lows from last week. The mini Nasdaq is also lower on the day, but the short term charts appear to be much more constructive as the selloff died out well short the levels we saw last week.
Markets have already priced in a rate hike tomorrow, but I believe most traders will be looking for more information on whether or not the FOMC is still planning on additional hikes, and if so, how many this year. For a while now, Yellen has eluded to the FOMC’s desire to raise three times in 2017. I tend to think that those are lofty expectations. I just don’t see how we go from two interest rates over the past ten years (December 2016 included) to three of them in this calendar year. Maybe I’m wrong, but I would think that the Committee will want to see how tomorrow’s rate hike ultimately plays out before prematurely committing to multiple hikes in the near future. Time will tell.