Market Analysis and Trades for 5/8
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The weekly post and video for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. Link to Market Analysis for The Week Ahead
For today, FOMC day, the big picture trade was monitoring the 4 day balance (box) that had formed:
We can that the look below played out on the FOMC volatility and resolved for 70+ handles into high of day.
We will discuss tonight whether or not I think the trade sees continuation to the top of the range and/or an upside breakout.
We were fortunate to get a nice trade early in the day before the volatility started. After the enormous rip high right at last night’s 6pm open, futures consolidated and formed a P shaped profile. This profile broke down during the premarket session which had major targets of 5635 and 5627 ES with the possibility of retracing all the way back to the bottom of the range which for ES was 5607. From last night and this morning’s update:
The 5652-5655.25 level offered three fantastic shorts today, the last resolving for 60 handles.
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