ESZ5 daily chart

As we said in the Weekly Preview, the ES made a consolidation day Monday, moving back and forth within a narrow 8.50-point range, most of the time in negative territory. It closed with a loss of just 3.75 points, which was not very bad.

The Federal Open Market Committee (FOMC) policy-setting meeting kicks off today, with Wall street searching for clues about a possible rate hike.

We may see another waiting day like Monday, but there is also the possibility for “leaks” anticipating the FOMC moves in advance of the policy announcement.

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If there are leaks or rumors floating around today, ES could run up and wait at the high, and then “Sell the news” after the announcement is made Wednesday.

An alternative would be moving down to fill last Friday’s gap at 2053 or lower to 2030-20 zone for testing first , and then “Buy the news” and bounce back after the announcement.

One way or other, last Friday’s high and low will be the decision lines for direction. A move below 2055 line, and ES could go down first; a break above 2070.50 line, and ES could go up to 2080-90 first.

Outlook

Short-term === Bullish
MEDIUM TERM === Bullish
LONG-TERM === Bullish

Support and resistance

Major support levels: 2005-02.75, 1992.5-87.50, 1950-56, 1928-29.50
Major resistance levels: 2072.75-75.50, 2088-89.50, 2099-2103, 2114.50-16.50