FOMC and Powell have sent the indices on a two-day rollercoaster ride. Here’s how I measure sentiment as well as gauge strength or weakness on these very volatile days. When you have some great measuring sticks for support and resistance, it sure does help.
The end of April reminded trend trades how abruptly strong macroeconomic trends can be broken. However, the upside is that the focus becomes even sharper for setups where the trends were able to remain intact. There are still daily timeframe trends that are worth sticking with despite the volatility in the indices.
In today’s video, we break down the crazy “relief” rally we had today after the FED meeting and Powell’s comments. With the Kentucky Derby this weekend I have to say today was a “Run for the Roses” as we ripped higher by 161 points in the ES and took out a lot of shorts. Every time I think we have seen the wildest moves, we get even more. Where do we go from here? We discuss the reasons we could have more upside and/or an eventual pullback. We also look at an EOD trade as well as a very cool 8.6 MM trade taken today.
In today’s video, we break down the crazy “relief” rally we had today after the FED meeting and Powell’s comments. We ripped higher by 161 points in the ES and took out a lot of shorts. Every time I think we have seen the wildest moves, we get even more. Where do we go from here? We discuss the reasons we could have more upside and/or an eventual pullback.
The market chop did not disappoint leading up to Fed announcements. Join Joe Rokop as he covers the market action for the day and even covers some of his overnight positions on the Nasdaq and the S&P 500.
Today we heard from the Fed with the rate decision of (+) .50bps and the market made its feelings about that known. The question now is the same as always, “Now what?” Let’s take a look at that in our mid-week update.
Technicals + Order flow has me looking for a reversion to the mean/ test of resistance at & here is how I plan to trade it.
The technicals & order flow have me targeting a level to get short but we need to be patient. I think patience right now is important as we head into an FOMC meeting with the expectation of a 50bps rate hike. Which hasn’t happened in a while. If the FED says something that isn’t already priced in then things can be shaken up a bit.
With the SPY testing support, closing on a hammer candle (reversal pattern) with +15 million ($6.5B) late buy prints with confirmation today. As long as nothing is said during the FOMC that isn’t already priced into the market tomorrow. The SPY is set to revert to the mean (21EMA) and test resistance at the $430 level. Here is a trade idea you can potentially benefit from.