A Look At The Major Indices Ahead of FOMC
It’s slow out there today and it’s no surprise that yesterday and today are shaping up to be the two lowest volume days of 2016. But that is sure to be short lived as we have a catalyst on deck tomorrow, the FOMC statement by the fed which is sure to bring a little more action to markets.
Here’s where we stand across the major indices heading into the fed.
$SPY after a nice multi-week run up we are pulling back towards that rising 8 period EMA and consolidating recent gains. 197 – 203 is the range I’ll be watching moving forward, and to a lesser extent that nice round 200 SPY level sits right in the middle as a point of control.
$IWM has major resistance above it around 108 which stopped this trend dead in it’s tracks on the first test. It’s since spent 6 days consolidating underneath that major level, so be aware that this is already a bit wound up for the next directional move.
$QQQ is in the process of trying to hold above a very important 106 level of prior resistance. This is a clear line in the sand and one that I’m using to guide my decisions moving forward.
As you can see most of these indices are quietly moving sideways but the levels outlined above should be paid attention to if volatility picks up tomorrow afternoon.
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