DIA staged a nice ABC-wave rally recovering from major low of 150.5.
Currently looking ripe for a continuation of the underlying major correction from 183-150.
The 175-176 region is ultra significant, comprising of:
(i) previously surrendered neckline,
(ii) 76.4% fibo retracement line for the 183-150 plunge, & also
( iii ) the 127.2% extension level of earlier rise from 155-167.
Similar setups can be found on the other 2 indices - SPY & QQQ .
Will update on SPY over the weekend. :)
#DIA #DJI #dowjones #index #fomc
US major indices continues to stall as all eyes on FOMC decision due tomorrow - 1400h EST
Technical check on other FOMC-sensitive instruments:
* Crude Oil (/CL or USO,UCO) - Bearish
* Gold (/GC or GLD) - Short-term Bullish
* 10yr Treasury Yield (TXY) - Rise-averse sentiment
(Yield dropping from 2.097% to barely hold above 2%)
* Volatility/Fear Index (VIX) - Bullish
(Strong; bottoming out from 15.48 pivot low)
Overall charts are singing a BEARISH tune on tomorrow's FOMC rate decision.
Anyway, I'm of the opinion that its more likely that Fed will raise rate during its Dec meeting (Dec15-16) instead; if they plan to surprise the market consensus of a Jan'16 hike.
(i) Long on VIX
(ii) Short on DIA (cfd), Buy Put on $DJI
Plus, a few other potential trades waiting to go in Post-FOMC.
Trade Safe peeps! :p