NQ Ahead of FOMC May 3 ‘23
Tuesday’s economical event provided smart-money an opportunity to mitigate on their offside-shorts while simultaneously scaling in more buys aligned with higher time frame institutional order flow and the overall macro as a whole.
This occurrence of Tuesday’s sell-off was essentially just an internal-external layered-liquidity run. The nested dealing range’s external low was broken; however, price remained internal of the overall interbank dealing range at play.
The only reason why this manipulated market structure shift unfolded was due to the fact that the bullish macro met its weekly objective by taking out previous week’s high, not to mention also taking out April’s high. Being that price was accumulating in a premium, the volatility from NY open was bound to spool price to deep discount given the overall narrative.
Nonetheless, the price leg down was not a true market structure shift because no buy-side liquidity was offered on the way down, which means there was no stop-hunt on sellers intra-session; therefore, Tuesday was in all actuality a stop-hunt on interbank and retail traders who were still swinging longs from last week’s closing bull-run.
At this point, we have established the low of the week, thus making Tuesday NY PM the entry point for the short-term setup to translate in a bullish weekly expansion fueled by FOMC Wednesday.
We are currently witnessing the algorithmic sequence indicative of a buy model being engaged. We have coupled bullish breakaway gaps on the 15m showcasing a willingness to displace with no plan of return, leaving behind buy-side imbalances and sell-side inefficiencies. This phenomenon is a clue from the Central Bank on where their directional intention lies.
The anchoring of my Fibonacci gives me my projections in alignment with daily liquidity the bullish macro will be seeking to deliver buy-side.
This occurrence of Tuesday’s sell-off was essentially just an internal-external layered-liquidity run. The nested dealing range’s external low was broken; however, price remained internal of the overall interbank dealing range at play.
The only reason why this manipulated market structure shift unfolded was due to the fact that the bullish macro met its weekly objective by taking out previous week’s high, not to mention also taking out April’s high. Being that price was accumulating in a premium, the volatility from NY open was bound to spool price to deep discount given the overall narrative.
Nonetheless, the price leg down was not a true market structure shift because no buy-side liquidity was offered on the way down, which means there was no stop-hunt on sellers intra-session; therefore, Tuesday was in all actuality a stop-hunt on interbank and retail traders who were still swinging longs from last week’s closing bull-run.
At this point, we have established the low of the week, thus making Tuesday NY PM the entry point for the short-term setup to translate in a bullish weekly expansion fueled by FOMC Wednesday.
We are currently witnessing the algorithmic sequence indicative of a buy model being engaged. We have coupled bullish breakaway gaps on the 15m showcasing a willingness to displace with no plan of return, leaving behind buy-side imbalances and sell-side inefficiencies. This phenomenon is a clue from the Central Bank on where their directional intention lies.
The anchoring of my Fibonacci gives me my projections in alignment with daily liquidity the bullish macro will be seeking to deliver buy-side.
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