PreMarks: 09.22.11

Markets are set to open lower in a continuation of selling that began after the Federal Reserve {the Fed} yesterday said it saw "significant risk" to the global economy. In essence the Fed mimicked the International Monetary Fund from a day earlier when it ratcheted down it's global growth rates, citing slowing economies in Europe and the US. The Fed yesterday all but admitted that there was little that it could do to stimulate economic growth at this point. The help the economy needs now are changes in fiscal policy not monetary policy. It also didn't help yesterday that all of this occurred at a time when the shortest term indicator we follow when we analyze money flow had become over bought.

Stocks are going to have an ugly open if the futures are any indication. The latest sell off has taken us back to the mid-level of the trading range we've been in since the market found some equilibrium back in mid-August. Today's opening trades will likely take us back near the lows. We will take our cues from how stocks react to that support level. Areas of focus will be higher dividend paying ETFs and areas of the economy that could do well in a lower growth environment.