Today was actually 2 trading days which turned into 3. The cash market trading hours had trading before the FOMC minutes at 2pm EDT and after the FOMC minutes release. These minutes were of the FOMC meetings 3 weeks ago which preceded the Bernanke press conference that started the stock market sell off. Bernanke had a speech after the cash close starting at 4:10pm EDT where obviously he said some things that the market liked as the ES shot up over 10 points.
The pre-minutes trading session was painful. The ES worked a 6 point range around yesterday’s closing price of 1645.45 without providing any order flow opportunities. After the FOMC minutes were released, the ES initially acted positively but came back down into the DTG 45 level as volatility started slowing down. It seemed like a long wait, but finally institutional buyers started showing some interest which provided today’s example trade opportunity.
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