The exclusive Markets Morning Report is supplied by The Precision Report.
The Precise Take – Eyes on the Fed
Big Picture Analysis – After Monday’s dip below support, appearing as though the bear flag on the 135 minute had broken to the downside, a bit of strength yesterday, followed by a big beat by Apple after the bell has facilitated a rally overnight to 1382.00. With the ES poised to open in the upper 1370’s, any early strength might lead to some short covering ahead of the FOMC announcements. However, with the extreme of the daily R3 floor trader pivot having been reached, the ES could just as easily work off enthusiasm in the opening hour. As to the FOMC, the first release is the Meeting Announcement at 12:30 pm EST, followed by the Central Tendency forecasts at 2:00 pm, followed by Chairman Bernanke’s press conference at 2:15 pm, which should last to about 3:00 pm. No surprises are expected. Nonetheless small details can to produce large intraday movements with the order book thin and liquidity low.
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