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Good Wednesday morning!
Yes the warning sign is posted once again!
Why? Because today is FED Day! At 2:00 PM EST, the FOMC (Federal Open Market Committee) will announce their decision on interest rates, however there is a 99% chance of no change, so the market already knows this fact. The reason there will be higher volatility today is because FED Chair Powell will hold a press conference @ 2:30 PM EST and this is where traders and investors will be hanging on his every word. There is a bit of uncertainty surrounding what he says and how he will steer the committee forward in the near future so please be prepared for anything today.
Yesterday was a nice hold by the bulls and upside targets were hit. The bears still lie in waiting. The key levels proved to be very valuable once again as the moves off of and through those levels were very telling.
In the profile pic and key targets below, you can see futures have moved back into prior day range below 6105.50 after exploring higher into the gap again but failing. Any price action between 6090 and 6070 is going to be chop and balance. If sellers stay below 6090 then take out 6070 which is value area low, then look for lower targets. If the bulls take out 6090 back to the upside then look for 6105.50 and then of course any movement above yesterday's high look for the ultimate short term target, which is the gap fill to our upper targets to Friday's low at 6122.
Futures are lower this morning and overnight inventory is mixed. As I mentioned previously, with the Fed coming out with their decision on interest rates, there will be some volatility this afternoon, and for this morning, we could see some back and forth battles as traders try to position themselves into the meeting. That along with being inside of prior days range tell us that today's open will be a bit of a coin toss. Futures are trading @ 6087 at the time of this writing.
VPOC Update: No new VPOC's were added yesterday however 2 were taken out above @ 6100 and 6081.25, so now we two left above @ 6148.50 and 6171. We still have 30 below with the closest @ 5985.75 and 5950.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6120 - 6130
Key Levels: 6105.50 Prior high then gap fill to 6122
downside target is: 6040 - 6030
/NQ upside target is: 21,800 - 21,825
Key Level: 21,513 Top of single prints
downside target is : 21,450 - 21,420
/RTY upside target is: 2315 - 2320
downside target is: 2285 - 2275
Economic Data: *RED STAR EVENTS TODAY
International Trade in Goods @ 8:30 AM EST
Crude Inventories @ 10:30 AM EST
*FED Decision on Interest Rates @ 2:00 PM EST
*FED Chair Press Conference @ 2:30 PM EST
More Color....... By Analyst Rich Rickus
Be back soon!
Have a great day!
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