After a week of grindy market action we had a nice flush off at the open and then full blown reversal led by NVDA. The market is consolidating this massive 2 month push the last couple weeks. We could very well keep chopping up with some big up days and down days to freshen up the charts and let them rest.
All eyes will be on the federal reserve tomorrow. We get an interest rate decision at 2pm then commentary after. Most likely the decision is just a nothing and all eyes will be on future guidance. One thing to remember is that the original though that the market was running so hot end of 2023 was that rate cuts were on the cards as the economy would slide. That has not been the case as we have had speech after speech saying that with jobs so strong there may be no reason to cut. The AI cycle has really goosed the market more then the interest rate expectations so its important nto to read to much into the statement and let the price action dictate where the market wants to go and we can quickly react to it.
With earnings season over we may get a period of slower action couple days up then down that is fairly normal. Markets tend to trend only a few months of the year the rest of the year traders are usually playing defense or adjusting strategies to more mean reversion or range tactics or looking for sectors that are working .
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