The long anticipated Fed minutes release dominated today’s price action. The stock markets played out most of the morning in an narrow range before dipping into the wide DTG 38.50 level into lunch time. Institutional sellers piled on at 41 which was the Aug 20th low of the day. Then institutional buyers came in setting up a potential trapped traders situation. As I posted in chat this morning, the morning was a time to fade the edges of the range for small targets. There may not be any 2nd push opportunities. The trapped trader situation was just that, it had no confirming 2nd push. As I also posted in chat, I couldn’t find anything on the news feed to give the bears confidence to keep moving down before the Fed minutes release, so there was a good chance that the sellers below 41 were indeed trapped. It was a totally different day once the Fed minutes were released and the ES made a pretty wild 19 point move up and then down into the close.
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