Outlook 06/13: With the Fed set to hike its benchmark interest rate for a second time this year, the focus today will turn to Chairman Jerome Powell's press conference. New projections could show the central bank tilting toward four increases in 2018, rather than the three hinted to in March. Investors may also render a "hawkish" view if the Fed sounds more optimistic on the economy, raises its interest rate forecast, or announces that Powell will hold press conferences after every meeting.
/ESU8 Value: YVAH 2791 YPOC 2789 YVAL 2787
/ES Plan: Yesterday market closed balanced. Overnight profile is also balanced, moving above yesterday's value, so we've these options:
A) If market remains above YPOC 2789 with bullish internals, become a buyer leaning on 2789-90 towards ONH 2796 LIS 2800 and PBT 2808. 'Look below and fail' is a bullish signal.
B) If market starts to move below YPOC 2789 with bearish internals, become a seller leaning on 2789-90 towards ONL 2789 and YVAL 2787. 'Look above and fail' is a bearish signal.
Tips: FOMC days are unique events that call for increased attention and a shift in tactics. It’s best to treat FOMC days as two separate sessions. The time before the announcement, which tends to involve a tightening price range and lower activity, which gives way to a sudden burst of volatility that continues into the close. Trade setups that work well in the morning session may fail completely in the afternoon session, resulting in significant losses.
Today's Economic Calendar
10:00 Atlanta Fed's Inflation Expectations
10:30 EIA Petroleum Inventories
02:00 PM FOMC Announcement
02:30 PM Chairman Press Conference
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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