Outlook 01/27: U.S. stock futures point to bearish open waiting FOMC announcement. Fed Chair Jerome Powell is likely to assure investors that the central bank won't taper its asset purchases anytime soon. The Fed is currently buying $80B of Treasury bonds and $40B in mortgage-backed securities each month to keep longer-term borrowing rates low. It has said it won't curb those purchases until "substantial further progress" has been made in achieving low unemployment and an inflation target of 2% a year.
/ESH21 Value: YVAH 3853 YPOC 3849 YVAL 3842 GAP 3851
/ES Plan: Last session market closed bullish, but overnight looks more bearish, moving below previous range, so these are the initial balance options for today:
A) If market moves above LIS 3808 with bullish internals, buy towards HVE 3821 GAP 3851 and ONH 3853.
B) If market moves below LIS 3808 with bearish internals, sell towards ONL 3791 HVE 3787 and HVE 3740.
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
10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
11:00 Survey of Business Uncertainty
11:30 2-Year FRN Auction
2:00 PM FOMC Announcement
2:30 PM Chairman Press Conference
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