Market Rallies Ahead of Fed Meeting

The market is rallying in the first hour of trading, on another drop in the price of oil and anticipation that the Fed will make dovish comments at today's FOMC meeting.

The Fed meets today and will hold interest rates steady at 2.00%. Investors will watch closely for the accompanying announcement from the meeting, and whether the Fed makes dovish comments about inflation expectations that could help boost the market.

My worry is that the markets rally too much before the announcement (2:15 EST), leaving the market vulnerable to another late day pullback into the close. We shall see.

In earnings news, Molson Coors (TAP) reported earnings that fell short of consensus, and the stock is trading lower. P&G also reported earnings, but its profits were better than expected. TAP cited challenges of energy and commodity inflation. Funny that PG didn't cite the same factors.

Asian markets were lower overnight, but European bourses are rallying today. The dollar is higher vs. the Euro, and helping to push gold lower again. Oil is also lower, trading below $120 this morning, which likely helped boost the market before the open. The 10-year yield is up slightly at 3.98%.

I am finishing updating my sentiment indicators from last week when I was out. I will be back with a quick update a bit later.