|5 min ES|
Fairly interesting afternoon session post Fed decision., interesting because of the lack of QE talk by the fed… Which is good… as Kudlow said tonight “tough”… DX futures greeted the fed with 11 month highs over 81.10 and the Euro tumbled to 1.3025.
As the dollar rose/euro fell equities came under pressure as they historically (last 3 years) do when we see the currency markets moving based on monetary policy concerns. The ES traded up to 1244 and failed down to 1231sh before catching the standard mid morning bid which failed on resistance of the acute triangle hypotenuse @ 1239.25. Bidders walked away after this fail, which coincided with a disappointing Fed quantitatively speaking. (headlines aligning with technical’s recurring them). Post fed ES failed down to 1212.50… a nearly 33 handle sell off from highs.. VIX came off lows but did not show green on the day. perhaps because this is another intra-day trough to trough move much glazed over by the mainstream media and home gamers.
I am all for a stronger dollar, the safe haven is dollar and US treasuries.. proof in the auction and price action in the dollar the last few weeks.
Crude appears heavy if 99.80 fails….. If the ES breaks over the descending trend line in place from 1255 which is currently 1221 we could see a melt up to 1230 which would be a test of intra-day fail support.
We break below 1219 could mean we test regular session lows… keep eye on the euro 1.3025 level … 1.31 resistance..