Major FOMC Move Is Setting Up For SPX This Week, What Way? March 21st Plan
I ended my last newsletter by writing: “I think we likely see another choppy Monday/Tuesday until FOMC within a fairly wide 3895-3985 range” in ES. This played out exactly as ES sold to a 3897 low overnight, before rallying to a 3990 high. We spent a large chunk of the overnight and daytime session right around that 3985 resistance.
It is worth adding that there is 0 coincidence why ES rallied 95 points off the 3895 level, and this is the core bull market trendline from the March 2020 COVID lows. Today, ES tested it for the 4th time. This week is of course all about FOMC, and ES just defended its multi-year bull market trendline - ahead of one of the most anticipated FOMC’s in many months - puts ES at a major inflection point with a big catalyst ahead.
The next few days will require skillful, unbiased day trading. In today’s newsletter, I’ll talk what I think comes next, talk how my system was used to navigate the action today, then provide the actionable trade plan for tomorrow.