Outlook 12/16: U.S. stock futures suggested the rally could continue after new high overnight. Top congressional leaders indicated they were inching closer to striking a deal after a day of meetings, while vaccine optimism and a dovish stance at today's Fed meeting are expected to propel markets further. Some expect the Fed to increase the current pace of $120B bonds per month or buy longer-dated bonds to stimulate the economy, though others see it providing "outcomes-based" guidelines that are needed before tightening monetary policy.
/ESH21 Value: YVAH 3682 YPOC 3661 YVAL 3652 GAP 3685
/ES Plan: Yesterday market closed bullish, and overnight continues on that way, moving above Yesterday's range, so these are the initial balance options for today's opening:
A) If market remains above YHOD 3689 with bullish internals, buy towards ONH-HVE 3701 ATH 3714.75 and PBT 3738.
B) If market moves below YHOD 3689 with bearish internals, sell towards GAP 3685 YVAH 3682 ONL 3680 and HVE 3669.
Note:
FOMC days are two separate sessions. The AM session tends to involve a tightening price range and lower activity. Trade setups that work well in the AM, may fail completely in the afternoon, resulting in significant losses. Today is NOT the day to trade aggressively.
Market Movers
9:45 PMI Composite Flash
10:00 Business Inventories
10:00 NAHB Housing Market Index
10:00 Atlanta Fed's Business Inflation Expectations
10:30 EIA Petroleum Inventories
2:00 PM FOMC Announcement
2:30 PM Chairman Press Conference
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