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Interesting Note: S&P 500 Ahead Of Fed Minutes

|Includes:SPDR S&P 500 Trust ETF (SPY), VXX

The Federal Reserve minutes will be released at 2PM ET today. This will give significant insight into what the Federal Reserve discussed during their last meeting. The markets will be looking for key chatter about whether there could be a pause to QE taper or if they plan to go full speed ahead with cuts. In the last two Federal Reserve meetings, QE has been cut by $10 billion each time. The market will be very happy if the Federal Reserve said they were leaning towards a more lenient policy on cuts to QE.

As the markets await the minutes from the meeting, we saw the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) hit the exact all-time high from January 15th, 2014. This level was nailed to the penny at $184.95. Once hit, the markets backed off immediately. Interestingly enough, the S&P 500 did not even come close to hitting that same all-time high at 1,850.84. It missed this level by over 3 points.

What does this all mean? It means that the markets are most likely going to begin their next major move on the back of these minutes. We will either break through the recent all-time highs or begin another sharp down move. One thing to note is that the S&P 500 VIX and the IPATH SP 500 VIX SHORT TERM FUT ETN (TSE:VXX) are both trading higher on the day, even with the market trading slightly higher. This tells us someone is loading up for volatility. It should be a very fun afternoon and coming days. Cheers!

Gareth Soloway

Stocks: SPY, VXX