It's FOMC Week!

My post content

This week it's basically all eyes on Jerome Powell and this month's FOMC meeting. Economic data before Wednesday is pretty light, with just some US housing data released on Tuesday. That means we will all be squarely focused on what Chairman Powell could, may, should, possibly say and do at 2pm ET Wednesday afternoon.

After pausing interest rate hikes for the first time at their previous meeting, the markets will be looking for some indication as to whether the Fed will signal that they are done with this rate hike cycle, whether they will raise rates and be open to continuing to raise, or whether the pause will continue to be labeled a pause and they will take a data-dependent approach to interest rates. Outside of the actual interest rate decision, keep a close eye on the infamous "dot plot" that indicates longer term views on interest rates. This will give a look into the thinking of the FOMC members and how they currently view the "higher for longer" approach to holding interest rates at an elevated level for a long period of time before beginning to cut rates once again.

What does all this mean for today? Well, the market has proven of late that it doesn't enjoy uncertainty. When uncertainty prevails, there tends to be a negative reaction from the indices. I'm not saying we should expect giant downtrend days--rather, I'd say it's important to keep an eye on the price action and determine whether we are going to trend, be range-bound, or suffer through some stupid chop. Have a game plan for all possibilities but also know which market is your strong suit. If nothing sets up, don't be afraid to lock it down early.

Here are my NQ levels today:

Current price: 15360

Upside Targets: 15405, 15455, 15500, 15530

Downside Targets: 15310, 15260, 15220, 15155

Stretch Targets: 15590, 15110