First, we can see that the Yen weakened, together with the 10Y Treasuries. This is a clear sign regarding expectations of a rate hike tomorrow.
In parallel, there was small cap relative weakness followed by a last minute money flow boost.
This last minute MF action also took place on the S&P500, indicating it was a whole market based buying action.
Since this push was also detected on the Futures, I would say that it was probably a preemptive strike in order to push markets higher before tomorrow's announcement.
A longer term view tells us that buying enthusiasm is rather limited here. dddetsrdtrd
Although NQ8/NQ100 stocks are doing well.
Conclusions:
I would not be short going into the announcement of tomorrow as it is clear that the market will not be allowed to pull back.
It will be interesting to see whether tomorrow, the Fed will increase both the discount rate and the rate on excess reserves.
There will be no comment tomorrow morning as I will be on the move. I however do not expect to bring much commentary value ahead of the FOMC announcement.
