FOMC Results

Plain & simple, based on today's trading, those who were bullish the ES futures didn't do as well as hoped today. First, prices were slightly lower overnight. Then, they rallied into the FOMC press statement and conference - where, though rates were not changed, Chair Powell promised to back off on the amount of QT by $-35 bil. And then the press conference ended with prices heading back down to the area of the open.

Of interest, where did prices rise to? Why to the 18-day SMA namely. Then they staged what looks like a pretty clear reversal. Yet, from an Elliott wave perspective there are still many patterns that can form with the current price structure. We haven't changed our count as there is no reason to, but further whippy behavior is possible.

Remember, we still have the Payroll Employment report on Friday.

Patterns like a Flat, a double zigzag, a triangle or even a third wave, lower, could form from this location & structure. So, if you're going to play some of these waves, do so with the clear knowledge that reversals of direction can come at unexpected times until the market gets into a more clearly recognizable pattern.

Have an excellent start to the evening,

TraderJoe