The Federal Reserve is expected to stand pat at its meeting today, bowing this time to global volatility from the U.K.’s Brexit vote after staying on hold since it raised rates in December. Central to the debate at the Fed’s policy meeting will be how to reconcile upbeat U.S. economic data, highlighted by strong job gains in June, with a slowdown in global growth and other headwinds threatening the inflation trajectory.
In Asia, Japan +1.7% to 16664. Hong Kong +0.4% to 2219. China -1.9% to 2992. India +0.2% to 28024.
In Europe, at midday, London +0.5%. Paris +1.5%. Frankfurt +0.8%.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.7%. Crude -0.6% to $42.67. Gold flat at $1320.50.
Ten-year Treasury Yield flat at 1.56%
(Source: Seeking Alpha)
Not much to add in today’s Briefing…Price remains locked between 2152 – 2172 edges as volumes continue to be sub-par…10-day average range now stands at 12.75…Portfolio Managers are sifting through reams of corporate earnings reports. All this has resulted in lackluster trading and few opportunities for intra-day traders.
Today is Cycle Day 3 (CD3)…With FED Announcement on tap today @ 2 pm price action could simply go either way, though typically there is an upward drift in price ahead of policy releases.
Range Projections and Key Levels: Sept (U) Contract
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (U) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 1: IF price clears and converts 2166 handle, THEN primary objective is to convert 2172 handle to upper support.
Scenario 2: Violation and conversion of 2160 handle would qualify for initial sign of weakness…Should this occur primary objective for Bears is to force selling below 2152 – 2154 key support zone.
Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.
Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”
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