ES overcame an early dip and turned around to squeeze the shorts and settled with a solid gain at the close. The action was highly connected to the FOMC policy statement and rate announcement to be released at 2pm this afternoon.

Yesterday’s low could be the low for the week. Because yesterday’s suddenly decline trapped some shorts below the 2096-95 zone, today we may see a dip on the news after the FOMC announcement. But as soon as those shorts are bailed out, we should see a rally again.

The ES has attempted to break out of the 2117.75-15.50 zone before, and we may see another attempt today. ES could go even higher today if the Fed statement finds favor with the Street; a break above 2123.50 could push the futures up to the 2130-35 zone. We should pay attention to the time and breakout direction. Anything can happen on FOMC day. Trade with caution.

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