Market Sees More Red Ahead of Fed Minutes
The market is trending lower ahead of today's FOMC Minutes that are scheduled to be released at 2pm (EST). The talking heads and slick talking pros are 50/50 on whether a taper cut will happen in September and they will be digesting the news looking for clues.
We have been in the camp a taper cut won't come until December and the zombies will be pretty tight-lipped as they probably want to see the upcoming nonfarm payroll report before firmly deciding. A positive jobs number the week after Labor Day could cause the Fed to trim but it's another two weeks away and summer jobs will be ending.
We could have a busy afternoon as the news could sway market direction or steamroll the bulls who have been on the ropes as the indexes moves closer to the bottom of their trading ranges.
The Dow is currently down 61 points to 14,942 while the S&P 500 is lower by 6 points to 1,646. The Nasdaq is declining 9 points to 3,604 and the Russell 2000 is off by 5 points to 1,023.
The S&P 500 Volatility Index ($VIX, 16.40, up 1.49) is zooming 10% and is on track to test our 17.50 target.