Outlook 12/19: The Federal Reserve is widely expected to raise interest rates by a quarter of a percentage point today, but may cut the number of hikes it anticipates next year in the face of market volatility, a collapse in oil prices, and cooling trade activity. Complicating matters further, President Trump again warned the central bank that it must tread carefully in order not to "make yet another mistake." The rate hike would be the fourth this year and the ninth since the Fed began its current tightening cycle in December 2015.
/ESH19 Value: YVAH 2576 YPOC 2570 YVAL 2555 GAP 2536.75
/ES Plan: Yesterday market closed bearish but overnight look slight bullish (GBT 2575) moving below previous value, into 2562-2541 range, so we've these options:
A) If market remains below YVAL 2555 with bearish internals, be a seller towards HVE 2541 GAP 2536.75 ONL 2531 and HVE 2529.
B) If market starts to move above YVAL 2555 with bullish internals, buy towards HVE-ONH 2562.75 YVAH-GBT 2575 and HVE 2586.
Tips: It’s best to treat FOMC days as two separate sessions. Trade setups that work well in the morning session may fail completely in the afternoon session. Pace of the Roll now is around 65%. Be cautious until Friday expiration.
Today's Economic Calendar
10:00 Existing Home Sales
10:30 EIA Petroleum Inventories
02:00 PM FOMC Announcement
02:00 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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