Outlook 07/31: Market focus is largely attuned to the U.S. central bank as stock index futures point to gains on expectations of a Fed rate cut. The decision at 2PM ET, which many expect to be a quarter point reduction, will be followed by a news conference from Jerome Powell, who'll explain why the move was necessary and what comes next. It is still unlikely to assuage President Trump's increasingly strident demands for easy monetary policy, as well as critics who say that cutting rates now will sap the Fed's firepower in the event of an actual recession.
/ESU19 Value: YVAH 3015 YPOC 3013 YVAL 3008 GAP 3012
/ES Plan: Yesterday market closed balanced and overnight continues on that way, moving above yesterday's valuee, so today's options:
A) If market remains above LIS HVE 3018 with bullish internals, buy towards ONH 3020.75 GAP 3022 ATH 3029.50 and PBT 3042.
B) If market moves below HVE LIS 3018 with bearish internals, sell towards GAP 3012 ONL 3013.75 HVE 3006 and GAP 2989.25
Tips: FOMC day. 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. Trade setups that work well in the AM, may fail completely in the afternoon, resulting in significant losses. If you've a winner morning, I suggest to avoid FOMC 'cowboy' session.
Today's Economic Calendar
09:45 Chicago PMI
10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
2:00 PM FOMC Announcement
2:30 PM Chairman Press Conference
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