Ahead Of The Fed

Another low volume down day. 1400-1406 is very strong resistance, and I suspect most of the selling was profit taking ahead of the Fed. Everyone is expecting a 25 bp cut, but nobody seems to know what the market's reaction is going to be. The weakest areas today have been the strongest of late, basic materials and energy.

The Nasdaq had a positive day. Most of the Nasdaq leaders on the IBD 100 (AAPL, BIDU, RIMM, etc) were up today, so they were not hit with profit taking. In monitoring the IBD industry groups, it does seem that technology is gaining some strength.

The Russell 2000 took a decent hit today, but it's had a good run since the bottom in March, so I'm not shocked at profits being taken here.

Oil and gold both took big hits today. Are the commodity markets signalling that they think the Fed is finally going to take inflation seriously, or are they just being cautious?