FOMC Minutes Offer No Surprises.

As expected, nothing of particular interest came out of the FOMC Minutes. Market initial reaction is sell. We'll see if the 1368-1370 support can hold this afternoon. Can't rule out a suckers rally to another new high just yet. I'll of course be looking at opportunities to get short if we do get such a rally.

From the Minutes:
Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.

Market Continues Consolidation Ahead of FOMC Minutes

Took two days of trading, but both the trade setups I mentioned in Monday's post have come in to play. The sell above 1385 and the buy below 1372 on the ES. If still holding a long from the low 1370s, I would consider taking profits between 1382 and 1385. There is, however,  a solid possibility of seeing a higher high, so if you are holding more than one contract, scaling out of the position would be smart.

Next step is to wait for the FOMC minutes at 2:15pm EST. I don't expect any new information to come out of the minutes. The Fed has no reason to offer up more QE at this time, and unless there are some surprises, the only market reaction I can expect, is one of selling. I continue to prefer short entries if ES trades back above 1385 or if the ES moves above Monday's high.

Levels to watch today on the ES:
Resistance Above at 1385-1387, 1390-1391
Support Below at 1368-1370, 1361-1362