Traders will be looking to get an idea of whether the Fed is "one and done" with the last rate cut or whether more rate cuts are coming. The market seems to be buoyed by the belief that come Oct. 31, the Fed will cut rates again. This is not guaranteed at all, given the strong employment numbers, falling dollar, and rising commodities.
Tomorrow's FOMC minutes could be a "tell" to that end.
If there's a whiff of "one and done" in the minutes, then short XLF could be a good trade as the financials will be most negatively impacted. But it could bring the market down across the board.
The FOMC minutes come out at 2pm ET.
Oil inventories come out at 10:30am ET. See my earlier post on Oil prices as reported in WSJ today. Watch the USO and OIH reaction at this time.
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