Key Takeaways:

  • The Fed announcement is in focus as Evergrande fears subside  
  • Key technical levels could make life hard on the bulls
  • Despite the news on Evergrande, real estate is showing strength

Stocks appear set to open higher on Wednesday ahead of the Fed announcement. However, there’s no expectation that interest rates will change. Instead, investors will likely be looking for any signals of a delay in tapering plans. Currently the feeling is that the risk of Evergrande becoming a “Lehman-type event” for China is unlikely and won’t affect the Fed’s plans.

Evergrande assured investors on Wednesday that it would make an interest payment on time. Although the Wall Street Journal reported that the company is still expected to miss a separate payment due to international investors. Investors appear to have an expectation that the Chinese government…

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