S&P

Here is an hourly chart of the December S&P e-mini futures. I commented on this chart yesterday afternoon.

As you can see the market is getting close to the 1340-42 target zone. The Fed announcement is due this afternoon at 2:15 pm ET. Until then it is unlikely that the market will move much.

My best guess is that after the news we shall see the S&P's fluctuate within the 1330-1342 zone. It is quite likely that the market will bounce off of the high edge of this zone and drop 10-20 points or so over the next few days.

Nonetheless, after any such reaction is complete I expect much higher prices later this fall. By the end of the year I think we shall see the S&P's trade above the 1400 level.