Prepare for a big move in the final 2 hours
Monday’s session was pure,
unadulterated window dressing by the big funds, nothing else. That was perfectly
evident in the closing minutes’ plunge where price action collapsed from the
opening gap & go ramp pinned sideways all day. For all the pundits and perma-bulls
out there who touted yesterday’s rally as something of substance to behold, the
final candles on these charts erased hours of hoof pounding prognostications. In
the end, S&Ps remain pinned near the venerable 1200 magnet and no trend bias
prevails either way at this time.
ES (+$50 per index point)
S&P 500 closed where it opened in the same
surge-move dramatic fashion. In between was nothing more than sideways, drifty,
artificial price action devoid of any accumulation = distribution type behavior.
Best trade signal all day came minutes ahead of the closing bell that ran for
big potential profits. Alas, I had left the screens and missed that
crystal-clear method signal myself ;<(
Now back to visible Fib support from Friday’s
lows to Monday’s highs, could easily see 1195 again ahead of the Fed today.
ER (+$100 per index point)
Russell 2000 did the same ramp, prop and dump
type of dance yesterday. 635 is quite possible to the downside this morning.
This Session
It’s another FOMC day. Often we see one directional push and then sideways
coiling ahead of 2:15pm EST news release. Following yesterday’s scramble of
price action, all bets are off ahead of the meeting for potential up, down or
sideways bias. After the minutes are released is also completely unpredictable.
The most that can be said for today is trade lightly ahead of the Fed and hit
every clear trade signal afterward. Potential for big move(s) inside the final
two hours today is great, so keep the powder dry until then and shoot straight
once news becomes officially known!
Trade To Win
Austin P
(Weekend Outlook trend-view section…
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.