A classic bull flag had a false breakout overnight. Price has fallen back into it and retested the upper channel, failing there too.
The 50DMA is at ES 3830-40, and it's entirely possible we revisit that level between now and the FOMC announcement tomorrow afternoon.
Following that, if the bull flag plays out completely, upside potential is all the way up at ES 4000.
The downside is also likely as participants seek event protection and bid up volatility, after which vol is crushed following the event (regardless of the outcome).
Trade active
⋅
Now en route to 3830-40 zone as participants seek protection (put hedges) and bid up vol
Trade closed: target reached
⋅
Hit 4000 target, further upside to 4030-4050 is possible before pullback