FOMC Meeting Begins

The FOMC begins its two-day meeting today to discuss current economic conditions and Interest Rate Policy. Expectation is for staying the course with scheduled tapering winding down QE Program. What will be of interest will be language relating to recent pick-up in Employment Situation to determine if mid-2015 interest rate hike is still likely scenario.

S&P e-mini is building a series of higher highs and higher lows in a complex-correction following last weeks waterfall sell-off. Support is marked at 1919.00 with retracement resistance between 1934.50 – 1936.50. Price is currently above  descending Three-Day Central Pivot Zone (3D CPZ) between 1926 – 27, so this zone becomes important to hold on any pullback.

Price is slightly above PDH (1933.50) in overnight trade top-ticked at 1935.00 which is dead center within yesterday’s target zone. This zone becomes our initial resistance retracement marker…IF price can penetrate and convert during pit session, THEN upper price targets 1939.00 – 1941.00 zone. Failure to expand above 1935 would suggest an initial probe to 1926 (3D CPZ)…Stronger support resides at 2-Day Lower Value Area (LVA) 1923.00.

Trade Strategy: With Fed Meeting and Options expiration on tap for this week, we will remain flexible to trade from both sides at key decision points. Expectation is for continued wide-range price swings within the two-day range will likely provide some decent opportunities.

Stay Focused…Follow the Rules…ALWAYS USE STOPS!

Good Trading…David

Habitude Three
I am willing to accept loss. Losing is an integral part of the process. I know and accept that individual losses and losing periods will happen. They are endemic to trading. I do not like loss. I do not expect loss. I simply accept loss as a cost of doing business.


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