After yesterday's "positive" close, the markets have since sold off throughout the evening session ahead of this afternoon's FOMC announcement. The recent highs may have something to do with speculation that the Fed is going to announce some measures to stimulate economic growth in today's meeting.
We are currently approaching minor support at 1110-1112 on the ES. If we break below that, watch for 1107. If 1107 holds, we may see a reversal to the upside from there. If not, next support is at Friday's low of 1103.50. Below that we will approach the 1098 to 1102 support range. Below that, next support is 1085.
NOTE: there is still an open gap from July 30th at 1098 and from July 21st at 1065.
Resistance above at 1118 and at previous highs at 1127. I continue to be interested in shorts above that level.
Watch for volatility after the rate decision. We could see some buying come into the market, but we'll have to wait and see what the Fed says.
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