By Gareth Soloway on June 22nd, 2010 1:32pm Eastern Time
Monday saw a massive gap higher only to fade and see the markets turn negative. Today, the markets are hovering around the flat line as the Federal Reserve begins their meeting on interest rates. The announcement will come tomorrow at 2:15pm ET. There is little question that interest rates will remain at their current levels with no raise in sight, but the key will be the dialogue the Federal Reserve releases. The markets are likely to remain flat until until that announcement.
The markets failed to sustain any of the rally from the weekend announcement that China would allow the Yuan to float slightly higher against the U.S. Dollar. It appears, the recent pull back in the dollar already factored in the Chinese move. The dollar has actually turned higher in the last two days. This often happens as news is never released all at one time, but will leak out over the course of a week or two to key players. This is why it is so important to ignore news and focus on the charts. The charts do not lie.
In addition, housing data today was very disappointing. The National Association of Realtors reported that sales of existing home sales fell 2.2% to a seasonally adjusted 5.66 million in May. Analysts were expecting a rise of 6%. This data was not good considering there was a tax credit available.
Technology continues to be stronger with the leaders being the obvious Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOG). Solid IPAD sales continue to be reported for Apple.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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