This is a big week in the market with yet another FOMC meeting taking place on Wednesday where Fed Chair Powell could announce a pause to rate hikes… or continue the Fed’s hawkish view and look to raise another half a percentage point. One thing is for sure on that front with the slight up tick in inflation over the past month, rate cuts are still a long way off.
After Friday’s trading session, there is still a pretty strong bearish bias gripping the market and with FOMC coming, there could be some consolidation until the Fed makes its next move. For now, we also maintain our bearish bias as there has yet to be a real bullish catalyst that would suggest any more moves higher.
As for the SPX, we are nearing a previous reject level, so be sure to keep that on your radar as we look to start another week of trading. However, despite all the dark clouds hovering over the market currently, we still have some ETF plays we are going to keep on watch. Just remember that FOMC meetings tend to create some volatility in the markets.
Seeing as how utilities is an area of the market that performs better during a bearish trend in the overall market, this is more of an ideal play for longs. Following along the same logic and since OPEC+ nations have signaled a prolonged period of production cuts, thus leading to…
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