Outlook 09/26: At 2:00 p.m. ET, the Federal Reserve will release its latest monetary policy statement, which markets expect will see the central bank raise the target range for its benchmark interest rate by 25 basis points to a new band of 2%-2.25%. This would peg interest rates at the highest level since April 2008. The Fed's announcement will be followed by a press conference with Fed Chair Jerome Powell at 2:30 p.m. ET as well as the Fed's latest summary of economic projections, which will include Fed officials' first estimates for economic growth, unemployment, and inflation in 2021.
/ESZ8 Value: YVAH 2927 YPOC 2921.50 YVAL 2920
/ES Plan: Yesterday market closed bearish (PBT 2909) but overnight looks bullish, moving within yesterday's value, so we've these options:
A) If market remains below YVAH 2927 with bearish internals, try to sell towards ONL 2922 YVAL 2920 GAP 2915 and PBT 2909.
B) If market starts to move above YVAH 2927 with bullish internals, become a buyer towards YHOD 2934 LVN 2938 and ATH 2947.
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, resulting in significant losses.
Today's Economic Calendar
10:00 New Home Sales
10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
02:00 PM FOMC Announcement
02:00 PM FOMC Forecast
02:30 PM Chairman Press Conference
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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