FOMC- FED announcement today

Tuesday as expected was a narrow range day, although it had a slight bullish tone to it. A gap up tried to fade but found support quickly and we chopped throughout the day. I would expect more of the same for today up until the FOMC announcement at 2:15 p.m. We usually don’t trend much before the Fed decision as traders sit on the sidelines. When the announcement comes it usually sets us up for a nice fade off the initial spike and then a possible trend into the close either way depending on the reaction to the report. This is certainly a key meeting so I would look for a lot of volatility surrounding the announcement and a good chance we trend following the spike.

As far as the charts are concerned, we still look higher in my opinion, as we still haven’t moved off last week’s reversal pattern, but the Fed will take center stage and precedent over the charts. If they give us good news we could blow up over the next few days, if not, we could see new lows. Let’s stay on the sidelines until the report comes out and then look for our setups .We will re-evaluate after today. Good Trading and we will talk to you on Thursday.