Is the Market Really Waiting on the Fed?

[] What We Can Expect Next Week [] [] [] [] So the S&P futures closed above the 5570 level [I pointed out yesterday]( and today they’re continuing to push higher. But the big question is, with the Fed meeting next week, will this momentum hold? The answer isn’t as simple as we’d like it to be. On one hand, markets tend to go where they want to go, regardless of the noise. This is something I’ve always noticed. Financial media will get worked up about some upcoming report, and maybe the market has a momentary reaction to it. But in the end, the market goes where it was going anyway. However, next week’s Fed meeting could be different. This week, the European Central Bank (ECB) just cut rates again, which puts more pressure on the Fed to do the same. And while the markets are hoping for a rate cut, if it doesn’t happen, we could see a correction. On the other hand, if the Fed does cut rates, expect the market to pop. It’s also worth noting that there’s still strength in the job market. Unemployment is low, job openings are high, and wages have increased slightly — though they haven’t kept up with inflation. This means that, despite the inflationary environment, we’re not in a full-blown recession territory yet, and that’s another factor weighing on the Fed’s decision. All that said, here’s the bottom line: If the Fed doesn’t cut rates, we could see a correction. If they do, the market could push higher. So, we’re sitting in a wait-and-see situation where the market is poised for a move, but it’s all about how the Fed decides to play this one. Next week could be a volatile one. Stay sharp and keep an eye on 5656 — that’s the next level I’m watching on the S&P. If we can close above that, I think the rally could continue. — Geof Smith P.S. Targeting weekly income from a stable asset is perfect for times like this when the broad market doesn’t have full conviction. [Here’s how I do it](. [] [] So the S&P futures closed above the 5570 level [I pointed out yesterday]( and today they’re continuing to push higher. But the big question is, with the Fed meeting next week, will this momentum hold? The answer isn’t as simple as we’d like it to be. On one hand, markets tend to go where they want to go, regardless of the noise. This is something I’ve always noticed. Financial media will get worked up about some upcoming report, and maybe the market has a momentary reaction to it. But in the end, the market goes where it was going anyway. However, next week’s Fed meeting could be different. This week, the European Central Bank (ECB) just cut rates again, which puts more pressure on the Fed to do the same. And while the markets are hoping for a rate cut, if it doesn’t happen, we could see a correction. On the other hand, if the Fed does cut rates, expect the market to pop. It’s also worth noting that there’s still strength in the job market. Unemployment is low, job openings are high, and wages have increased slightly — though they haven’t kept up with inflation. This means that, despite the inflationary environment, we’re not in a full-blown recession territory yet, and that’s another factor weighing on the Fed’s decision. All that said, here’s the bottom line: If the Fed doesn’t cut rates, we could see a correction. If they do, the market could push higher. So, we’re sitting in a wait-and-see situation where the market is poised for a move, but it’s all about how the Fed decides to play this one. Next week could be a volatile one. Stay sharp and keep an eye on 5656 — that’s the next level I’m watching on the S&P. If we can close above that, I think the rally could continue. — Geof Smith P.S. Targeting weekly income from a stable asset is perfect for times like this when the broad market doesn’t have full conviction. [Here’s how I do it](. [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub](