Stocks Hinge on Three Key Issues from the FOMC Statement Today

Stocks continue to edge up trepidaciously, testing 4421 or so, the levels from which we dumped on Monday. Two red triangles on the KRI have confirmed resistance here at every attempt. We won't see much action in stocks until after the FOMC minutes in the afternoon. A rate hike is largely priced into the markets, so when this happens, we should be able to break out higher. However, if their rhetoric is particularly hawkish, we could make another run for lows. Watch what they have to say about three key issues: inflation, Omicron, and Russia tensions, all issues which are currently spooking investors. If we are able to break out, then 4487, and 4580 are the next targets. If we break lower, we could test 4245 again. The Kovach OBV is edging up showing a slight bull divergence, but the FOMC event is what the markets are hanging on before their next move.