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Pre-Market Prep: FOMC stands for Funky O ...

Pre-Market Prep: FOMC stands for Funky Overall Market Conditions

Jun 16, 2022

Well after Powell came out and said Fed will only raise by 75bps. The market dipped, ripped, and trapped everyone and everything. We traded as high as 3843 and as low as 3723.50. Early session of the overnight traded up in the early part of the session at 3833.25. We had a nice inventory correction in a period but soon as the clock struck Midnight (est) we lost the bid and the market traded through the previous low and the whole market went to the T2 low. We traded through 3700 and have now has recaptured the T2 low and Previous low. With an hour before the open we can see another correction happening to inventory as I write this (3723.50).

The Plan today:

Sellers still in control:

Plan for today will see if we hold settlement T2 Low (3708.50) and 3700. If Sellers want to stay in control we will want to push under 3700 and I would look to see if 3676.75 trades. If that fails we will look for 3655 which is a balance level from my mentor @vwaptrader1.

Buyers to claw back:

For Buyers to fight back we would want to transact over the Previous low (3723.50) and accept. We will look to push back up in 3740-3755 area as well. This area was we begin to see some size from yesterdays J and K periods. If we can accept over 3755 we would want to test the Value area range and move upward.

Where is VWAP?

We are under VWAP currently and would look to see if we accumulate position underneath.

Key Levels:

3655, 3676.75, 3695, 3700, 3710-3714, 3723, 3735.25, 3740-3755, 3762

We will have to see how today plays out but remember trade safe, use stops, see you for the trading review session

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