Outlook: The Fed is expected to keep interest rates unchanged today as speculation swirls on who will be its next leader. With no updated economic projections or a press conference by Janet Yellen, markets will look to any change in the statement language for confirmation of a December rate hike. The Fed has already raised rates twice since January and currently forecasts one more increase by end of the year.
/ES Value: YVAH 2574 YPOC 2572.50 YVAL 2572
/ES Plan: Yesterday market remained above 2567 with volume rising and finally closed near value 2573 leaving bullish imbalance. Overnight printed a new record high and we know that ATH printed in the overnight session has always been revisited during regular hours. Inventory is bullish (PBT 2589), moving above yesterday's value, so as usual we've 2 options:
A) If market remains above LVN 2579-78 with volume rising, try to be a buyer leaning on 2578-79 and 2581.50 towards ATH 2584 and PBT 2589 Failure to take out ONH early is signal of weakness.
B) If market moves below LVN 2579-78 with volume falling, try to be a seller leaning on 2579-78 and 2575 towards GAP 2572.50 and LVN 2571. Failure to breakdown ONL early is signal of a strength.
Tips: Today is a FOMC day so don't expect to much action until the scheduled time of the FOMC meeting announcement, then there is usually an initial big move in one direction followed of a classic 'Z' zig zag move to run weak stops. More details here on 'The FOMC Setup'
Today's Economic Calendar
09:45 AM PMI Manufacturing Index
10:00 AM ISM Manufacturing Index
10:00 AM Construction Spending
10:30 AM EIA Oil Inventories
02:00 PM FOMC Announcement
Link for Updates (Check it during RTH session)
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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