The market is in wait-and-see mode in front of the FOMC interest rate decision this afternoon. (I will be live blogging this event on TheStreet this afternoon with fellow Real Money contributors). While breadth is running positive, there are more new 12-month lows than highs by close to two to one. Apple (AAPL) is a drag on the indices, but Facebook (FB) is almost back to flat as dip buyers took advantage of another weak open.
I've been building a position in Twitter (TWTR) , which I mentioned yesterday. Certainly, I don't expect it to go straight back up but it was probably unfairly tarnished by the Facebook drama. The stock held support at $30 and looks like it is now building a new base of support around $32.
As far as other individual stocks, I don't have much going on right now. My Stock of the Week, Baozun (BZUN) continues higher and Arena Pharmaceuticals (ARNA) is unperturbed about a pending secondary offering. I'm not seeing much else and inclined not to do much with until we have the Fed out of the way.
My biggest concern about this market is that the chart of the S&P 500 looks quite poor. I can foresee a scenario where a pop on the Fed decision is sold and that key support at 2700 is breached. If that occurs I expect dip buyers to stand aside and for sell stops to trigger.
I believe we go higher before a breakdown occurs but, as always, the timing is the tough part of the game.