Emini waiting for Wednesday’s FOMC Fed interest rate hike
I will update around 6:55 a.m.
Pre-Open market analysis
After Friday’s strong reversal up from a sell climax, yesterday formed a trading range day. The odds are that the Emini will remain neutral going into tomorrow’s FOMC announcement. While Friday might be the start of a 100 point correction, the bears need to create much more selling before traders will bet against this rally on the daily chart.
Since the Emini has been in a tight trading range with dojis for 6 days, the odds are that all moves up and down on the 5 minute chart will be swings lasting 1 – 3 hours instead of the start of a trend.
Overnight Emini Globex trading
The Emini is up 5 points in the Globex market. Since yesterday was a bull bar and an ioi buy signal bar, today will probably trade above yesterday’s high. At the moment, it is likely to gap up.
Yet, the daily chart has had 6 consecutive doji bars in a tight range after a parabolic wedge buy climax. In addition, the FOMC announcement comes tomorrow. Therefore, while the Emini is currently bullish on the 5 minute chart, the odds are against it rallying today to above Friday’s high. In addition, it will probably have mostly trading range price action again today, even if it rallies early.