Although the weather is cooling, the stock market feels like those “Dog Days” that periodically creep into trading. Those trading “Dog Days” often come on light trading volume when everyone is on vacation or “Gone Fishing.” Everyone is back at work right now, but there is a lot of confusion and mounting frustration. Consequently, the market bias has turned decidedly to the downside yesterday.

But there isn’t any panic as the CBOE Volatility Index (VIX ) still hangs around 14.0.

Nine sectors finished lower, with Energy (XLE) with the most significant retreat.

Big Technical Tests

The S&P 500 is treading water below its 50-day moving average and must find its footing soon. I want to see 4,400 hold; otherwise, the market is vulnerable to 4,186.

Breaking Out

The ten-year yield settled at the highest point since 2007. 

Crude oil hinted at touching $93.00.

Federal Open Market Committee (FOMC)

The Fed will not hike or cut rates today, but Jay Powell & Co. will lay out economic projections - and perhaps give subtle hints on what they are thinking.

I’m actually looking forward to the Fed “Dot Plot.”

Portfolio Approach

We closed a position in Industrial yesterday in the Hotline Model Portfolio.

Today’s Session

This morning, Bank of America strategiest Savita Subramanian raised the S&P 500-year end price target by 7% to 4,600, indicating bullish signals from several indictors.  Savita stated, “I see far more bullish indicators for mid and large cap stocks than I do bearish.”

I will discuss this with Savita on Making Money with Charles Payne at 2pm.  Join me.

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