Outlook 11/08: The Fed is likely to leave rates unchanged this afternoon as it announces its decision following a two-day policy meeting. U.S. stock futures are still giving back some of yesterday's gains as traders get nervous about upcoming tightening in December. Recent reports showing strong job and economic growth give the FOMC little reason to materially change its statement, while recent stock weakness doesn’t appear large enough to warrant extra attention from the central bank.
/ESZ18 Value: YVAH 2802 YPOC 2791 YVAL 2774
/ES Plan: Yesterday market closed bullish and Overnight is slight bearish, moving above yesterday's value, within 2808-2796 range on a bimodal profile (LIS 2808), so we've these options:
A) If market remains below LIS 2808 with bearish internals, sell towards ONL-YVAH 2802 HVEs 2796-2783-2765 and GAP 2759.25.
B) If market starts to move above 2808 with bullish internals, become a buyer towards GAP 2816.75 ONH 2818 and HVEs 2825-2842.
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.
Today's Economic Calendar
10:30 EIA Natural Gas Inventory
02:00 PM FOMC Announcement
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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