Can Bulls Continue The Recovery? Fed Day Tomorrow. May 4th Plan

Yesterday, ES put in a fairly “textbook” bottoming setup at least in a short-term sense: It formed a perfect daily bullish hammer candle, and in forming this it took out the old February “post-invasion” lows and then recovered them, making it a false breakdown. False break down + hammer candle = bullish in a classical technical analysis sense.

For this reason, I was looking for a relief rally today as written yesterday to 4195-4205, followed by a dip, and it played out. We rallied to 4195.75, then dipped back to 4155 support as indicated. Now of course is where things get interesting because tomorrow is FOMC day. These days are notorious for being 1) Pivot points in the market and 2) Very trappy and not easy to trade at all.

Today I’ll discuss the setup and how FOMC meetings typically play out historically