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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: macavity who wrote (6312)1/27/2001 4:19:53 AM
From: macavity   of 19219
 
Fed Funds.

Aaron Task @ TSC says that FedFunds are priced at 96.00% probability of a 50 bp cut.

>>
Indeed, at week's end the Fed funds futures contract was pricing in a 96% possibility of a 50-basis-point ease at the FOMC's Jan. 30-31 gathering, despite a stronger-than-expected durable goods report on Friday. Economists at all 25 primary bond dealers are now expecting the same.
>>

I would say that it is priced in .
If the market (or leading indices like the BKX) remain at o/bought in the short-term like this then I would say that the path of least resistance is down.

- macavity
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