Trade continues quiet and rangebound as Fed begins it’s two-day meeting. Investors/Traders await further clarification on Fed’s intents to begin it’s QE Tapering process…Last month Big Ben released a “trial balloon” and the market’s response was not to favorable…He then spent his time jawboning all month to reassure that the “crack pipe” will remain lit for the foreseeable future. That seemed to quiet an addicted marketplace.
Two-Day High sits at 1688.00. Penetration could give a boost up to 1695 – 1700 zone. Multi-day Midpoint resides at 1680 handle, so that could provide some back n fill support. As long as trade remains greater than 1680 price has higher probability to reach upper targets.
IF price fails to breakout and gets rejected, THEN traders will view negatively and potential heavy selling could begin. So all is mainly dependent on “Fed Speak”.
Lower target zones are PDL 1676.50, then 1671.50 down to key 1665 marker.
I think in terms of probabilities. I do not know, all I have are probabilities. Probabilities are at the core of my decisions. Through consistent application of the probabilities, I will win.