ES gapped down at open and stayed low for closing yesterday. GDP came in below expectation in the morning session; the Fed policy statement was the focus in the afternoon. Fed expects the economy will grow at a ‘moderate pace’ and keeps its options open for the timing of first interest rate hike, perhaps in June.
ES lost its upside momentum and pulled back into the broken resistance of the wedge pattern. Because today is the last day of April the 2090-2085 zone will be a key zone for both bulls and bears to fight over.
Bears have to fight to move the price down to have a rectangle pattern by pushing price below 2085; the bulls have to fight for a double bottom pattern by holding price above 2090 level.
ES could run up first and sell off later, or dip down first and bounce back up later, nevertheless, it still is possible for ES to stay inside yesterday’s range 2112.50-2090 for most of the day and spike just for shaking out the weak hands.