Markets were ugly in trading leading up to the Fed Rate Decision. Afterwards, immediate volatility ensued as expected. The SPY had been straddling the $108.79 support level throughout the day and minutes after the Rate Decision at 2:15 EST, the markets did a fake out to the downside (all the way to $108.33). Minutes later it was trading as high as $109.11. I had said that I would wait 15-30 minutes to assess market direction after the Rate Decision. Within 15 minutes you could see a long candle to the downside that was followed by a long candle to the upside. The next several minutes showed slightly higher highs and higher lows indicating that the market was turning slightly bullish. This was a potential long entry. If you took it, you made a great trade. I actually missed the trade even though I suggested it would play out exactly this way.
Futures are trading higher this evening pointing to a gap up on Thursday morning.
I will look to Short the Opening Gap in the morning and then reverse that position to the long side within the first 30 minutes. Slightly longer term (over the coming days), I am looking for the SPY to reach a target of $111.60 to $112.30 or the @ES from $1111 to $1116. Assuming the markets can't break higher, that will be a great place to short and look to retest the current lows.
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