Market Update: Ahead of Fed meet next week

Markets look dandy cotton candy today. The solid jobs report boosted stocks the entire day.

If you didn’t check out the VIX, it made a low off the 200-period moving average on the 60-minute chart…right near the $13 level.

VIX hourly chart

The dollar resumed its trend higher today off the jobs report. I’ll be interested to see if its just a bounce or if it follows through.

We haven’t recaptured the high from last week yet in the SPY. Closing the week up here would be bullish.

Here’s what I think happens. The Fed meets next week. Markets will rally until then or trade sideways. When the Fed puts out their statement, they note something about improved labor and wage gains. That will scare the market into thinking they will pull back on the easy money, which causes a selloff.

Happened in 2018, why not repeat it?