With that, we have the Fed meeting tomorrow.
Remember, we heard from Jerome Powell just two weeks ago. He made a prepared speech at the Brookings Institution and took questions.
Let's revisit what he said …
In that prepared speech he said, it now "makes sense to moderate the pace" of rate increases. Moreover, the "time for moderating the pace of rate increases may come as soon as the December meeting" (that's tomorrow).
Additionally, in the Q&A session at Brookings, he said, 1) "I don't want to over tighten."
With this in mind, the market is pricing in a 50 basis point hike tomorrow. Any accompanying language that suggests they might sit and watch from that point, would be rocket fuel for markets (as the Fed would be taking its foot off of the economic brakes).
And remember, we've been watching these big technical levels in stocks. We head into tomorrow's Fed meeting testing both the 200-day moving average, again (the purple line), and the big trendline that defines the decline of the year.