EXECUTION STRATEGY: - Enter long positions if initial FOMC reaction (2:00-2:30 PM) is bearish - Position should be taken only after confirmation of support around 6060 - Size appropriately given FOMC volatility conditions
KEY POINTS: - Looking for fill of Sunday gap at 6130 level - Initial bearish reaction often reverses during Powell's speech (2:45-4:00 PM) - Critical to wait for initial reaction before committing to position
EXECUTION STRATEGY: - Enter short positions if initial FOMC reaction spikes into gap area - Establish position during 2:00-2:30 PM window before Powell speaks - Use tight stops given potential for volatile reversals
KEY POINTS: - Higher probability setup compared to long scenario - Gap resistance zone likely to act as strong technical barrier
MARKET BIAS: SHORT TERM (1-2 DAYS): - Bearish bias into FOMC with expectation of failed rally into gap fill - High volatility expected during 2:00-4:00 PM trading window
LONGER TERM (2-5 DAYS): - Resolution of FOMC volatility likely to set directional tone for remainder of week - Key resistance remains at 6130 gap level with support at 6035-6020 zone - Monitor market reaction to Powell's commentary for sustained directional move
Note
We are seeing a pull back away from GAP pre-FOMC news. So likely it will run through that gap on the 2 PM News
Trade active
FOMC News Event Triggered. Weekly Opening Gap in play: LONG.
Note
Looking for 6040 to hold and expansion into Opening Weekly GAP.
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