We can expect above average volatility this week. First, earnings season remains in full swing. Second, the Fed issues its policy statement on Wednesday at 2:15 PM ET. Third, the employment report will be released on Friday at 8:30 AM ET. In addition to these biggies, we have ISM Services at 10AM ET on Wednesday, Crude Inventories on Wednesday at 10:30AM ET and Initial Claims on Thursday at 8:30AM ET. While I try to ignore as much of the fundamental information as possible, it is hard to ignore this week's cluster of events and the likely increase in volatility. Stocks are also set up for volatility as the major index ETFs are on the brink of medium-term trend reversals. DIA and SPY are trading just above medium-term support. QQQQ is trading right at medium-term support. IWM broke medium-term support last week. With stocks oversold short-term and battling support medium-term, the technical situation also point to volatility.
