Pre-FOMC And All Is Quiet
All is quiet to higher in the equity index market this morning as traders prepare for the Fed and its ensuing announcement. In the meantime, we have had a decent upmove through yesterday’s highs in all markets, albeit on light volume. Moving forward, the hope for the bulls is a neutral-bias statement from the Fed, which will alleviate the markets’ inflation fear, and move us toward a hopeful easing situation early next year.
As for the trade, a bullish response to the meeting could produce a move to the 1425 level over the next couple of days. I will continue to look for my three fakeout plays in the SPZ trade after the announcement.