Monday was an inside balancing day with an overlapping to higher value area. Potential balancing day again on Tuesday ahead of U.S. midterm election results, when volatility would be expected. The next FOMC Meeting is on Thursday, November 6.
Despite strong economic growth and the rise in average hourly earnings, there are no expectations for a rate hike at the November FOMC. There are expectations, however, for action at the December 18 & 19 meeting which, unlike this month’s meeting, will be accompanied by updated FOMC forecasts and a press conference. In an announcement slated for today Thursday and not the usual Wednesday, the FOMC is expected to hold its federal funds target range at a range between 2.00 and 2.25 percent with an implied target of 2.125 percent.
Price sold off below the low from Friday, repairing the poor low in the market profile chart.
Price acceptance below the base of the spike at 2666.25 could keep the selloff tone in-tact, possibly testing the buying tail below 2624.50 single print.
There was no outside day as price closed back within the prior day’s range. Value ended the session as overlapping to higher. Price acceptance back above the spike base could see price at at last attempt to repair the anomalies in Monday’s upper distribution.
The market had been one time framing lower on the daily chart for seven consecutive days. One timeframing lower occurs when price fails to take out the prior day’s high by more than a couple of ticks. It is not uncommon for price to stop one timeframing for one day to allow the market to come back into balance before the one timeframing process resumes. An inside day does not negate one timeframing.
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