Outlook 09/16: U.S. stock futures are continuing their march higher before another Fed-filled session following the recent symposium in Jackson Hole and the first meeting since Chairman Jerome Powell announced a greater tolerance for inflation. While the central bank is expected to keep rates on hold, the "dot plot" is likely to show interest rates will stay close to zero through the end of 2023. The Fed may also note an improved economy, but not celebrate it, and markets are hoping for a more accommodative stance. Bigger questions will touch on the scale and composition of its bond buying, and the Fed's long-term plan.
/ESZ20 Value: YVAH 3408 YPOC 3403 YVAL 3395 GAP 3395
/ES Plan: Yesterday market closed bullish (PBT 3440), and overnight continues on that way, moving above Yesterday's value, so these are the initial balance options for today's opening:
A) If market remains above LIS YVAH 3408 with bullish internals, buy towards ONH 3418.25 HVE 3420 and PBT 3440.
B) If market moves below LIS YVAH 3408 with bearish internals, sell towards HVE 3398 GAP 3395 and ONL 3385.25
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. Learn when to go big, go small or not at all. Defensive trading!
Market Movers
10:00 Business Inventories
10:00 NAHB Housing Market Index
10:00 Atlanta Fed's Business Inflation Expectations
10:30 EIA Petroleum Inventories
02:00 PM FOMC Announcement
02:30 PM Chairman Press Conference
04:00 PM Treasury International Capital
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