FOMC week starts

Context: The Fed meets in the week ahead, and it is expected to begin shrinking its $4.5 trillion balance sheet, but the announcement has been widely anticipated. The market may find the Fed's comments on interest rates, inflation and the storm impact on the economy more interesting.
Markets will keep their focus on Washington, as a tax plan is awaited. North Korea will remain a focus, as Trump speaks at UN tomorrow.

/ESZ7 Value: YVAH 2498 YPOC 2495.25 YVAL 2494

/ESZ7 Plan: Friday closed leaving a bullish 'p' shape (PBT 2504) that has been repaired on Sunday Globex opening. Overnight inventory is bullish moving above Friday's value drawing a bullish 'p' shape (GBT 2507). New all time high has been printed on Globex and we know that new highs on Globex has great chance to be tested on U.S session, so we've 2 options:

A) If the market moves above 2SD-LIS 2500 with internals neutral or positive, try to be a buyer leaning on 2500-2501.25 towards ONH 2504.50 and GBT 2507. Failure to take out ONH early is signal of weakness and opens the gate for more selling pressure.

B) If market moves below 2SD-LIS 2500 with internals neutral or negative, try to be a seller leaning on 2500-2501.25 towards YVAH 2498 and LVNs 2496-2494. Failure to breakdown LIS 2500 early is signal of a potential move towards GBT 2507.

Tips: We can't control P/L but we can control our trading process. We may be discretionary in our decision making, but not random. Trading process is rule-governed from a clear understanding of who is in the market, what they're doing and who's doing the best job.

Today's Economic Calendar

10:00 AM NAHB Housing Market Index
10:30 AM ECB's Lautenschläger Speech
04:00 PM Treasury International Capital

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

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