FOMC Day Coming Up - Expect Volatility in SPX. September 21st Plan
In yesterdays/Sundays newsletter, I was looking for a relief rally ahead of FOMC to 3925, 3945, then attempt at a sell lower. ES got to 3936 overnight before finally running out steam and starting a sizable pullback today back to that 3850-55 zone that had been a major magnet since Friday tested *5x*. Of course though, as I had said in yesterdays newsletter, it is ultimately all noise until FOMC tomorrow at 2pm and any action today can easily be reversed in one 4hr candle after FOMC.
ES heads into FOMC tomorrow in a technically critical spot. The 3850 zone is the support of a multi-week falling wedge as discussed in prior newsletters. In addition to this, the 3850 zone is the magic “20% off all-time highs” bear market level, which we bounced hard at in May.
In todays newsletter, I’m going to discuss how I traded today’s choppy session via yesterdays plan, talk about how the last 4 FOMC days panned out (Hint: They were all the exact same), then talk my plan for what should be a difficult, trappy session.