2500 & FOMC

Context: FOMC week starts. All eyes on the Fed’s next move. Although Janet Yellen’s Fed isn’t expected to make any change to interest rates, it is anticipated that it will lay the groundwork for unwinding its $4.5 trillion balance sheet, if not announce its start. Yellen is likely to emphasize that normalizing the balance sheet is going to be gradual so as to avoid disrupting markets. Bond and currency markets, which have been the most attuned to Fed policy, will experience the greatest degree of volatility if there are any Fed surprises.

/ES Recap: SP500 future has printed another new record high at 2500 after cash session closed. ETH and RTH charts leave bullish imbalance (2500.75-2503) so expect a new test of 2500 during next RTH session.

/ES levels: 2500.75-2503 resistance, 2496-2494-2489 support

Disclaimer: All information on this update is for educational purposes only and is not intended to provide financial advice.