how to trade FOMC tomorrow
Hey team.
FOMC tomorrow, so we’ve got our hands full.
Let’s not waste time…
Impact Snapshot Tomorrow
Federal Funds Rate - 2:00pm ET
FOMC Press Conference - 2:30pm ET
Market Evaluation
Traders gearing up for Wednesday’s Federal Reserve decision sent stocks higher amid gains in a handful of big techs. Equities erased losses after a rebound in the tech megacaps.
Investors anticipate that the central bank will maintain its current interest rates during Wednesday's meeting.
Nevertheless, a series of troubling inflation updates has raised concerns among investors, who fear that the central bank might indicate a prolonged period of elevated interest rates beyond initial expectations.
Markets Breakdown
Today’s session completely negated sellers overnight pullback as the market started to rally right at the opening hours.
Many times we’ve talked about when the market is looking at an overnight gap, more often than not it likes to correct that gap.
Buyers took control of the market at the previous month’s highs towards 5187 and bounced off of that area in the EU overnights session.
Market successfully reclaimed the settle which targeted upside continuation that put us back inside Monday’s range with the session currently falling short a couple ticks for a new higher high relatively to yesterday.
Balance is market’s mechanism to communicate that it awaits additional information prior to beginning it’s next key directional movement.
This information will come tomorrow with the FOMC rates decision and Press conference remarks looking to shape a volatile session ahead.
As mentioned on our prior market report, the market bounced exactly off of the trend line which was overlapping the 20EMA.
It remains to see if buyers can successfully break out from the key resistance area of 5240s that the market has rejected off of for 3 times now.
ES
The targets we look for until NY close & Targets to pay attention Tomorrow:
Upside Levels: 5245/5261/5280
Downside Levels: 5218/5202/5181
That’s it for today’s brief.
We’ll see you Thursday!
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