The FOMC Dip Was Bought; Another Rally Incoming For SPX? June 15th Plan

As readers know, I was long into today from 4395 yesterday, taking profits at 4416 and leaving a runner into today’s big FOMC session. I concluded yesterdays newsletter by writing: “On a regular day though, my lean is that ES can continue basing above 4405-08, then take a trip to 4429, 4438-40, then perhaps 4450s”. This played out nicely this morning and we got the spike to 4438-40 resistance, and this was the pre-FOMC high.

FOMC delivered a nice flush and then the same thing happened that happens every FOMC day - the first move was a trap. I wrote yesterday: “Since these days are defined by traps, my answer to trading them is simple: Focus on failed breakdowns/breakouts” and we got one. We flushed to 4385 major support right after FOMC, trapped shorts, and squeezed.

After a week straight where every ~20 point dip was routinely bought, todays 60 point sell was a nice change of pace, but ultimately, we ended unchanged. Are we simply going to continue up now? In today’s newsletter I’ll break this down, talk how failed breakdowns yet again provided entries for today’s squeeze, then talk the actionable plan for tomorrow