Will Fed Extend Operation Twist??

The big question looming over the midday Fed announcement is whether or not they will extend Operation Twist or give any hint to a new quantitative easing plan?

Through the first 90 minutes of trading the stock market has been teetering between a loss of 0.3% and breakeven. I expect the narrow trading to remain until the Fed announcement is made around 12:30et. Overall the market is looking good after the S&P 500 broke above its 50-day moving average for the first time in months.

Sectors moving today include:

• Consumer Staples ($XLP) are falling after Proctor & Gamble ($PG) has poor guidance last night.
• Financials ($XLF) are moving higher after a rally in shares of JPMorgan Chase ($JPM).
• Overall the moves (up and down) are muted.