FED FOMC is generally a catalyst for some volatility in the markets. It is clear that there is still quite a bit on uncertainty in the market, but it is becoming more clear that we are likely approaching the end of the hiking cycle.
The latest DOT plot reveals that the FED fund rate for 2024 will increase from 4.6 - 5.1% which is signalling no real major rate cuts in 2024.
However, there is some ideas going around that the FED has planned and purposely changed this to support their "higher for longer" narrative. Powell did state that they are not fully committed to these rates if things in the economy change, so it was likely a statement made to give the market some kind of guidance and attempting to removing uncertainty.
Outside of the news, we are seeing a compression wedge formation in the market after a move up before consolidating. We may potentially large move breakout in the coming days. I would not be surprised if the market moves up prior to making its move back down as buyers have been defending these zones in recent weeks.
The latest DOT plot reveals that the FED fund rate for 2024 will increase from 4.6 - 5.1% which is signalling no real major rate cuts in 2024.
However, there is some ideas going around that the FED has planned and purposely changed this to support their "higher for longer" narrative. Powell did state that they are not fully committed to these rates if things in the economy change, so it was likely a statement made to give the market some kind of guidance and attempting to removing uncertainty.
Outside of the news, we are seeing a compression wedge formation in the market after a move up before consolidating. We may potentially large move breakout in the coming days. I would not be surprised if the market moves up prior to making its move back down as buyers have been defending these zones in recent weeks.
Trade active
Short to zone between 410-420Note
There will be a few levels to watch on the way up. 440 and then approx. 446 on the SPY where we have resistance from above. Probability may suggest we will fill the gap at approx 438. Would consider more short positions the higher we move up.
Trade closed: target reached
410 Critical level reached
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.