Another Volatile Week Ahead With FOMC: May 2nd Chart and Plan
We are in a heightened volatility trading regime and last week was a classic example of what this often looks like. We had two 100+ point rally/short squeezes off the 4200 level (both triggered by fake breakdowns below), trap filled chop between those moves, and then ended the week with a 150 point free fall.
This week may be more of the same, with FOMC on Wednesday. FOMC meetings quite often mark pivot points in the market, but not without significant back and forth trapping first. We must focus on price though, and the fact ES broke down a major chart pattern Friday (triangle) suggests that big picture downside is still ahead. Here is what I’m looking for this week