Major FOMC-Driven Breakout For SPX, Is More Upside Ahead? Feb 2nd Plan
FOMC delivered the volatility today as it always does: I spoke yesterday how FOMC’s are the most trap-filled, difficult trading days of the year, and today was no different putting in two trap spikes downward before the major squeeze. Despite this though, the path today played out perfectly from the lean given yesterday.
I wrote yesterday: “My general lean is described above, and as long as 4047-4053 can hold I think we ultimately continue up to 4100, which is breakout point to 4130, 4160”. After FOMC, we spiked to 4047-4053 (twice to be exact), then rallied to 4100, then 4160, and dipped. From a technical perspective, today’s strength was no surprise. As discussed non-stop for the past week, last Wednesday, ES broke out of its core downtrend line from January 2022 at 4020. Yesterday, we back-tested it, and off to the races.
With ES firmly broken out the question is, now what? In today’s newsletter, I’ll be talking the big picture, discussing the major resistance overhead, and talking the actionable trade plan for tomorrow. Hint: Post-FOMC days are often just as volatile as FOMC days