Today there will be an FOMC announcement around 11 AM PST. The markets are divided by whether Powell will cut by 25 or 50 bps. I’ve mentioned that I think there will be a 50 bps cut. We’ll hear the results soon.

QQQ Trading Under $475.20 Resistance

The market is likely to have a big move in either direction, and I told you all that I’m betting on a move to the downside. QQQ is currently neutral under a key resistance level around $475.20. I think the market continues to move sideways until the FOMC announcement. There is also an important policy announcement by the Bank of Japan this week, but the market expectation is a pause for Japan.

SQQQ continues to hold above the yellow support line as we approach FOMC. If there are any moves to the downside I would monitor support around $8.12.

NVDA Trading Within a Tight Range

NVDA continues to trade within this range, and over time the gap is getting smaller. There is support around $105.24 and resistance around $121.89. NVDA is due for a big move after the FOMC announcement.

Very volatile day for the markets, but in the end I think QQQ is forming a rejection here at the yellow trendline. There was a long wick above and hopes of a breakout for bulls. However, I think this is a failed breakout. The red of Sept is quite literally the worst time of the year to be bullish as well. The 50 bps cut is a major red flag for me especially when considering all the other red flags we’ve discussed in the past.

NVDA is the most important stock to monitor, and I think we are seeing a lot of weakness on a very important day. I think NVDA drops back down to $105 and takes the market down with it.

There was a lot of back and forth between bears and bulls today, but bears ultimately ended up closing the day red. The price has rebounded back up during post market hours, and tomorrow we’ll see which direction the market ultimately trends towards.

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