Today, Friday, features Michigan Consumer Sentiment at 10:00 am. High volatility returns Wednesday (in 5 days) with Retail Sales at 8:30 am, followed by the FOMC interest rate decision and economic projections at 2:00 pm. Powell’s presser at 2:30 pm remains the focal point as markets weigh recent inflation data. Monday and Tuesday offer manufacturing and ADP data. Expect heavy price action as the "dot plot" reveals the Fed's terminal rate outlook.
Traders should tighten stops ahead of Wednesday's FOMC announcement, as the "dot plot" could trigger significant dollar and bond yield volatility. Monitor today's sentiment data for early clues on consumer resilience. Defensive positioning is advised until Powell clarifies the year-end rate path.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.