Post FOMC Trading Thoughts (SPY)
We all know in the seconds leading up to and after the FOMC announcement the algo’s go apeshit driving the SPY in either direction 50c in seconds. My advice is stay out of the battlefield until the algo’s and traders alike stop hitting hot keys 12 times a second. Once all the dart throwing is over the market should start to make a powerful move once everyone is on the same page, it might be a rocket down a dollar or a move up, who knows.
The chart above shows the 111.06 level as a point of inflection, i posted the chart on August 6 we may pivot or fall right through like butter, all depends on on the macro move i talked about earlier after the dust settles. The market moved up into the 113.25 level failing to break higher, seemed as if the smart money was taking on VIX and VXX premium, sell higher buy low right? i think so.