Futures Surge, Gold Falls Ahead of Fed

US stock futures point to a sharply higher open Tuesday ahead of the Fed policy announcement this afternoon. The S&P is currently set to open near move highs, up 7-8 handles in the pre-market. US markets are tracking European counterparts higher after stronger than expected German investor expectations.

The main catalyst for today’s move appears to be the Fed announcement. Nothing new and game-changing is expected from the FOMC, but they are also unlikely to begin offering any exit strategy from the “extended period” of low rates. Gold saw a precipitous drop in late February after Chairman Bernanke appeared to rule out further quantitative easing in his testimony before Congress. While the market is surging the morning, gold is selling off fairly hard in the pre-market.

Markets had an inside day yesterday after an impressive snap back last week. Technically, digestion is always good after a big move. With the S&P opening near highs, the resistance zone stands around 1374-1378. It will be interesting to see how it unfolds today. Do we bust through and close above them today? Or can this zone act as resistance, with a post-Fed sell off? Everyone must have a plan as markets held higher yesterday and some stocks have already busted into new highs.

Disclosure: Scott Redler is long AAPL, IBM, DNKN, LNKD, ZNGA, BAC. Short SPY.

About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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