This week is packed with lot of market moving indicators and therefore fasten your seat belts. Weather is expected to be turbulent. In addition to key economic data, a large number of S&P 500 companies are expected to announce earning results as well. Of course the biggie is FOMC announcement on Jan 30, 2:15 US EST. A quarter point cut is already factored, but 50 basis point is what will move markets.
340 S&P 500 companies are yet to report results including the king of earnings, Google. Past quarter is gone, I would therefore suggest paying close attention to the “outlook” and “margins”. Whoever has “both” deteriorated, will be punished harshly.
Expect a lot of volatility, one day down, the other day up or vice versa. I expect the “market driving forces” to pull markets down before FOMC announcement so as to have psychological pressure to cut rates more (hasn’t that happened all the times since Aug?) I surely don’t think markets are headed higher significantly before announcement. At best, sideways.
Have fun, profitable trading, OP