Wednesday Market Update -- Angst Over Fed Patience

News:
Bloomberg.com fell into design hell last night with a new look. As a former ad guy it makes me cringe when I see a leading company with absolutely no idea what its brand stands for.

Apparently they just hired Joseph Weisenthal from Business Insider. Last I knew, the guy fancied himself as a writer, not a designer.

Per Zero Hedge's morning market wrap (always a must read), Bank of England says new normal for interest rates is 2-4%. Reserve Bank of New Zealand is seen holding rates at 3.5%. Sovereign yields in Europe are higher while peripheral EU yields are surging. Meanwhile, Singapore surprised with a de facto easing on monetary policy.

Per Channel NewsAsia Singapore, "the Monetary Authority of Singapore (MAS) said on Wednesday (Jan 28) it will adjust its monetary policy and let the Singapore dollar appreciate at a slower pace."

I see this as a toxic mix. Singapore is a bell weather for global trade. This is obviously dollar related, but if they do see the need to cut rates outright, something's wrong. Rising yields in Europe are not a good sign, either.

Today is Fed decision day. All the angst about will they or won't they keep the word "patient" is pathetic.

ES Futures:
Still up modestly on the heels of good earnings from Apple, but well off their best levels in a somewhat impulsive looking manner.

FX:
The way the intraday chart of the US dollar looks since yesterday could suggest that the Fed may have something up its sleeve. The euro looks like it too, inversely. Both would require follow through as yet, however.

Bonds:
...and the overnight volume standout is...10s and 5s, where yields on 5s continue to firm vs yields on 10s.

Conversely, HYG and JNK, two proxies for risk, are showing relative strength vs. SPY and IYG (financials). Another reason why I continue to see higher SPX near term.

Energy:
Oil is whacked for another 2%+ overnight. 

Metals:
Gold remains in what appears to be a consolidation before further gains toward $1,400.

S&P Outlook:
Got a close above 2020 after a brief break of it.  Here are some weekly trend lines that I'm keeping an eye on, for whatever they're worth. Thus far the market is saying they should be respected.

Nearer term, the market is keeping its intentions close to the vest with patterns suggesting just as much potential for upside as downside. Another reason why it feels good to be somewhat hedged.

I expect somewhat muted action today until the Fed decision. God only knows what happens afterward. I was encouraged by yesterday's action until around 3pm. The close was not encouraging.

By the way, CNBC was using the word reset repeatedly yesterday. Not to be outdone, the Drudge Report chimed in, too. The S&P rallied over 20 points intraday and closed positive.