What you need to watch this week

The week just past was one of very low intraday range movement capped by a gap-up Friday to break the recent congested range. With a two-day FOMC meeting that announces next interest rate decisions Wednesday afternoon, this week has the makings of a much more active tape indeed.

ES emini (+$50 per index point)

S&P 500 futures gapped up from the open to their R2 value, and trudged generally higher from there. Early attempts to fade that move short did not work well at all, and were quickly abandoned by savvy traders. Flat or long were the only two trade signals issued from 11:00am EST into the closing bell.

ER emini (+$100 per index point)

Russell 2000 futures acted relatively weaker than the ES all day, with two swings lower from the open and into the close. Between those bookend blips of red were likewise two very modest swing upward in green. It was a rather listless day between the bells, rising in agony would be the most fitting description overall.

ES (+$50 per index point)

As noted earlier, the S&P posted a breakaway gap move to break above recent weeks-long congestion of the sideways pattern. It will remain a breakaway gap if price action holds above 1320 on a daily-close basis while posting new highs in the process. Should this gap-up move falter quickly and fade, those relative highs may not be seen again for quite some time. Upside has the clear nod for now... ball is in bulls' court to keep pressing upward.

ER (+$100 per index point)

Russell 2000 also broke & closed above recent resistance barriers. Upside remains favorable unless buyers fail to hold higher levels into and beyond the week straight in front of us.

Summation
FOMC interest rate decision on Wednesday followed by bits of econ data Thursday & Friday keep the latter part of this week filled with price-moving catalysts. We commonly enjoy directional action just ahead of FOMC sessions, which bodes well for the first two sessions ahead. All that coupled with last week's low-range intraday movement and we have prime trading conditions facing us in the next five days to come.  Further upward advance clearly has the nod, but sell signals that stick could catch some big moves lower if buyers balk and air pockets fill before the Fed clears the air on what comes next in their endless rate game adjustments.

Trade To Win
Austin P
www.CoiledMarkets.com
(Online video clip tutorials... open access)

Austin Passamonte is a full-time professional trader who specializes in E-mini stock index futures, equity options and commodity markets. Mr. Passamonte's trading approach uses proprietary chart patterns found on an intraday basis. Austin trades privately in the Finger Lakes region of New York.