FOMC Day

Outlook 11/03: U.S. stock futures are relatively flat waiting to see whether the Federal Reserve announces the start of tapering its bond purchases following its two-day meeting. However, the bigger story for markets is how the central bank will discuss inflation. Markets will be watching closely if the word ‘transitory’ has left the station. Investors would be shocked if they heard that word come up again. While the market is sanguine about the Fed's tapering, there's a lot of questions on how Fed Chair Jay Powell will address the market pricing in rate hikes starting in the middle of next year. 

/ESZ21: YVAH 4625 YPOC 4622 YVAL 4615 GAP 4621.25

/ES Plan: Yesterday market closed bullish (PBT 4651), but overnight looks balanced, moving within Yesterday's value, so these're the opening and initial balance options for today:

A) If market moves above YVAL 4615 with bullish internals, buy towards ONH 4625 ATH 4627 and PBT 4651.

B) If market moves below YVAL 4615 with bearish internals, sell towards ONL 4616.75 and HVE-GAP 4605.

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 Final

10:00 Factory Orders

10:00 ISM Service Index

10:30 EIA Petroleum Inventories

2:00 PM FOMC Announcement

2:30 PM Powell Press Conference

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