Good Morning, Traders. Another day of divergence where the broad market averages did their usual shuffle which put all the emphasis on the Dow and left the beleaguered Nasdaq far behind as usual. When the dust settled at 4pm, the Dow managed to gain 55.23 while the Nasdaq actually lost 6.74. I don't think we need to keep beating our readers over the head with this that the Nasdaq is recently quite out of fashion. In a recent interview in Vogue magazine, supermodel Kate Moss was quoted as saying "I'm really into listed stocks right now, I mean the Dow is just killing it. Its all about energy and metals and those cute little three letter symbols! Four letter symbols are soooo 1990's." Well, there you have it. As far as the technical picture from a slightly more informed source is concerned, it does not look at this juncture that the Dow will pause at all before making the assault on the all time highs as annotated above at the 11750 area. Notice how the strong advance of May 5 (third candle from the right), has been followed by one sideways day and then yesterday which instead of continuing the consolidation (like the S&P, which was completely flat on Tuesday) actually moved up another notch setting new multi-year highs yet again. There is even a chance that today could be the day, because it's a Fed Day where the FOMC will announce their decision on rates at 2:15pm ET. As we know, there are often very large knee-jerk swings in the broad market on Fed days once traders make judgements on what they consider the policy makers stance on rates going forward will be. The Big Picture expects a sleepy morning today followed by a crazy afternoon as usual once the news hits the wires. Outside of the fed news, expect an interesting day in the markets today with DOE oil inventories dropping at 10:30am EST (should shake up $XOI and $OSX), and Treasury budget figures for April being released at 2pm EST as well. Intraday opportunities will probably be fewer and far between in the morning with better pickings in the afternoon. You may consider holding off on entries for swing or position trades until after the smoke clears with the Fed.

Peter Reznicek is the Chief Equity Strategist and a principal of the Prana Fund, a domestic hedge fund, and ShadowTrader, a subsidiary of thinkorswim which provides coaching and education to its clients on both intraday and swing trading of equities. For a free trial to the full version of The Big Picture or to learn about ShadowTrader's other services, visit shadowtrader.net or send an email to preznicek@shadowtrader.net.