A slow choppy day with a bullish skew. The buyers held the position from the overnight session. The sellers were active at the resistance but one could notice no follow up to downside. They had many chances to go low but it did not happen. Eventually, the buyers broke to upside into the closing. This is a Pre-FOMC session and its outcome is not indicative per se. The stats based on 127 days is the following: 69% of the time the market opens higher than the previous day on the FOMC announcement day. It looks like this is going to be one of those days tomorrow.
Nevertheless, the market structure and price action is the only thing I watch and the resistance is broken. That's the fact. If the buyers hold it then I expect to see a retest of the resistance above. If the price starts coming back into the previous range then it would be a warning sign. Post FOMC reaction could be tricky but after the dust settles the market should pick a direction to go.
Stay nimble.
9/17/2019
Nevertheless, the market structure and price action is the only thing I watch and the resistance is broken. That's the fact. If the buyers hold it then I expect to see a retest of the resistance above. If the price starts coming back into the previous range then it would be a warning sign. Post FOMC reaction could be tricky but after the dust settles the market should pick a direction to go.
Stay nimble.
9/17/2019
