FOMC Tomorrow, Can Bulls Continue The Rally? March 22nd Plan
I concluded yesterdays newsletter at 4pm by writing: “My immediate lean is we push to 3997-4k, perhaps another dip, then lift up the levels to 4010, 4022, then 4038-48 which is next decent resistance”. I called 4038-45 the magnet. ES wasted no time on this front, and this played out perfectly: We popped to 3997-4k overnight, dipped, then lifted up the levels making it to 4038-45 target.
Ultimately though, this is all the pre-show as tomorrow is one of the most widely anticipated FOMC days in months, if not years. FOMC days are regularly the widest ranged, most complex and challenging days for trading and tomorrow will be highly volatile.
As readers know, this recent 130+ rally this week in ES was no coincidence whatsoever and reflected technical analysis 101: ES tested its core bull market trendline from March 2020 yesterday, and squeezed 135 points. With FOMC tomorrow though, can it continue? In todays newsletter, I’ll be addressing this, providing my general approach/philosophy to trading FOMC days, and providing the actionable trade plan for what should be a very volatile day.