Countdown to Wednesday Fed rate decisions.

The market seems to be celebrating for a rate cut.But will the Fed bow to market demands?Recently released economic data and Fed officials have put up no road blocks to suggest otherwise.Will they still shift their focus from inflation fighting to confidence-boosting? The rate cut is not necessarily effective because "liquidity seeks out the inflating, not the deflating asset."

U.S. crude futures settled at a record $91.86 a barrel, up 1.5 percent, or $1.40, on the New York Mercantile Exchange. Earlier, in electronic trading, oil reached a record high of $92.22, bumping up energy stocks.Will this create a cost push inflation which the Fed might be wary about?

Friday's market has been bolstered by Microsoft (NasdaqGS:MSFT - News)which lifted its full-year forecasts late on Thursday and reported quarterly profit that beat analysts expectations. Countrywide (NYSE:CFC - News), the largest U.S. mortgage lender, on Friday reported a quarterly loss, but it forecast a profit in the fourth quarter as it slashes jobs.

The bulls roared ferociously at the onslaught of the opening bell thereafter managed to maintain its run-up.I've notice a four-legged doji at 1:30pm followed by a gap down hammer. The day ended with also a "Four-legged Doji."Will the following session will be a repertoire of what happen at 1:30 pm.This four-legged frog can either leapt-up or downward at a terrible speed.So caution ahead of this big turning point! Frogs prefer in underground waters rather than dry lands.
With the USD being hammered to extreme lows of late,any further rates cut will further dampened its value.Investors around the financial globe are placing on big HOPES.The bearish piercing candlestick on Thursday was surprisingly followed by a bullish marubozu.Can this be a bull-trap?The intraday closing where the open,close,high & low are the same might cause a big tremor on Monday session!Furthermore Wednesday is the mid-session of the Dow Index Futures.(PiVot)