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Will E-mini Make A Big Move After June FOMC Report?

By Al BrooksStock MarketsJun 16, 2021 09:42AM ET
www.investing.com/analysis/will-emini-make-a-big-move-after-june-fomc-report-200586459
Will E-mini Make A Big Move After June FOMC Report?
By Al Brooks   |  Jun 16, 2021 09:42AM ET
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E-mini daily chart

Even though E-mini has been experiencing buy climaxes on both the weekly and monthly charts, no credible top has been forming, so odds favor higher prices. The June FOMC report at 11am PT today could have an effect.

There's been a tight bull channel on the daily chart for the past 4 weeks, so traders will continue to expect higher prices. They will continue to buy 1- to 3-day selloffs until there is a very strong reversal down.

Yesterday’s high was below Monday’s all-time high, and yesterday’s low was above Monday’s low, so yesterday was an inside day. Both buy and sell signal bar. There was a sell signal bar for a failed breakout above the May 7 high, but E-mini has been stuck in a tight bull channel for 4 weeks. Minor sell setup.

High 1 buy signal bar but bear body. Minor buy setup.

E-mini 5-minute chart and what to expect today

  • E-mini is up 1 point in the overnight Globex session.
  • Yesterday it formed a trading range around the open of the week, so that is a magnet.
  • June FOMC report at 11 am PT today. Since there are more signs of inflation, there's more potential for a change in the Fed’s wording.
  • This increases the chance of a big move after the report. It could be in either direction, and it also could reverse and form an opposite big move.
  • Because of potential for big move after any 11 am PT FOMC report, day traders should exit positions ahead of the report.
  • Since there is usually a big move in both directions in first few minutes after the report, day traders should wait at least 10 minutes after the report before resuming trading.
  • Very little correlation between the moves before and after the report. Trade what happens after the report as if it is the start of a new day.
  • Ahead of the report, be open to anything. Yesterday had a lot of trading range trading, as do most days. Day traders will expect reversals.
  • If there is a series of strong trend bars, day traders will look for a trend, but they should exit ahead of the report.

E-mini 5 Minute Bear Trend
E-mini 5 Minute Bear Trend

Disclaimer: Here are several reasonable stop entry setups from yesterday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day (see Online Course/BTC Daily Setups).

My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.

If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro E-mini.

Will E-mini Make A Big Move After June FOMC Report?
 

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Will E-mini Make A Big Move After June FOMC Report?

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