Mack’s Mid-Morning ES Price Action Chart 07-31-2024
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Today is an FOMC announcement day. I believe the markets are banking on a rate cut today, but no matter how things turn out, it will likely be a very volatile afternoon. Make sure you are flat one full hour before the 1 PM CST announcement. I am unsure of what to expect, but you can see we are already having a large rally that left a large gap on the chart down at 5451.75. I mean, we already have a 100 point move up for the day, so if we get any kind of surprise with FOMC, things could get wild. If we do not get a rate cut, this market could drop quickly and strongly. I am not saying that will happen, but it is something we should all be aware of, just in case.
You never really know how the market will react to news, so that is why we stay flat during these big news events. Good news can send the market lower and good news can see the market turn down strongly, so it’s a gamble as to what to expect. Sit tight and wait for that new item announcement and then wait for things to settle down. Most news moves reverse and take back the move within an hour anyways. That is not 100%, but more times than not, that is what happens.
For the moment, the trend is up and up strongly, so stay with it until an hour prior to the news, and then I would exit any current trades and be flat as we wait on the FOMC announcement and for things to settle down again afterwards.
