Hurry Up And Wait

The market is mixed in early trading. But don't expect any big moves either way until after the FOMC announcement at 2:15 ET. That's when the Fed wraps up its 2-day meeting and let's the world in on its policy directive.

It is nearly a done deal that the Fed will hold rates at 5.25%, but the question on investors' minds is will they make any comments hinting at a more dovish stance. Will they say the risk is still balanced between economic weakness and inflation? And will they make any comments hinting at the weakness in the subprime mortgage market?

Asian markets were higher overnight, for a third straight session, And the Yen is down again, easing pressures or worries about the yen carry trade.

The tech sector got some good news in the form of strong earnings reports from both Oracle (ORCL) and Adobe (ADBE). Both stocks gapped higher at the open. The subprime sector is also getting some relief on news that Fremont General (FMT) agreed to sell $4 of its subprime residential loans.

Oil rolled over to a new contract, so it is now back around $59.75, but still below the psychological $60 level. And bond yields are up a bit to 4.58%.

With the markets already up nicely this week, and nearing overbought levels, I would not be surprised to see some profit taking this afternoon.