The Fed Day Short Squeeze Delivered In SPX, Now What? July 28th Plan
History tends to repeat in markets and it certainly did today with the reaction to FOMC. In yesterdays newsletter I talked about how the last three FOMC days were all essentially the exact same: ES put in massive green days on all three, typically squeezing 125+ points off the low of the day and usually, after a quick trap move to the downside first. Today followed the template to a tee and we put in a slightly smaller 75 point squeeze.
In yesterdays newsletter, I wrote I would be entering longs above 3945 and this positioned very well for todays rally. The high of day was ~4040 which was the first upside target for the day. While FOMC may be out of the way, there is still GDP tomorrow, and as many recall, price action after prior FOMC days was not favorable to bulls.
In todays newsletter, I’ll be talking how I traded today as per yesterdays plan, talking the bloodbath that occurred the day after prior FOMCs, and talking why this one may be different.