Good Morning Traders!
Start of FOMC…and Dax has turned back up on the 120 minute (see chart belo) and the SPs are testing the upper end of a broad trading range. Above 1078 would be considered a significant upside breakout from this broader range. If the SPs find resistance between 1970 – 72, they will most likely drop back down to the middle of the range (1046). An upside breakout Or, rejection of the top of the range is more likely to come after the FOMC release on Wednesday…but this market has been full of surprises.
The chart of the Gold below shows a Buy Divergence on the 240 minute. Of this fails to lead to a trade back above the 240 minitue EMA, Gold can retest the 1205 – 10 area….again, more likely to happen after FOMC announcements.
Lastly, the Yen has a clean sell formation on the chart below….bonds and Yen have been trading together and the bonds failed to rally yesterday.
SP levels: 1968.50 1971 1978.25
to downside: 1965.75 1961.25 1956.25
have a great day!