Fed Announcement Should Show Little Change

The market is flattish in early trading, ahead of today's FOMC meeting. I do not expect there to be much change, if any, in the Fed's statement that will be released this afternoon. If there is any change, it is likely to just be additional color on the end of the MBS purchases scheduled for this month.

European bourses were higher after reports surfaced that officials have reached some agreements to provide financial aid to Greece, although no specific amounts were released.

Asian markets were mixed, with Japan edging lower and China bouncing +0.5%.

In economic news, import prices fell -0.3% in February, housing starts were weaker than expected (-5.9%) last month, but building permits fell less than expected (-1.6% vs. -3.4% consensus). Severe snowstorms in the Northeast may have skewed these figures, which are always lumpy to begin with.

The dollar is lower this morning, which is boosting commodity prices, as well as the energy and materials sector. Oil is higher to $80.80, while gold is also up near $1124.

The 10-year yield is lower at 3.67%; and the VIX is slightly lower to 17.90.

Among the sector ETFs, materials are strongest (+0.90%), while healthcare is weakest (+0.0%). Gold is up the most among the sub-sectors (+2.58%), while homebuilders are lagging (-0.06%).

Trading comment: The market remains a bit extended due to its streak of up days. I have raised some cash in our aggressive accounts to take advantage of any pullback. But I am not turning bearish. I expect any dip to be a pause that refreshes, and I think the recent breakout to new highs in the Nasdaq and small- and mid-cap indexes is an indicator that the markets can continue to climb in the intermediate-term.