Now that we made it through the Federal Reserve meeting, let’s lay out a few scenarios moving forward to continue trading strong.
The S&P 500 (ES) dropped hard following the Federal Open Market Committee (FOMC) statement, popped Thursday morning, and now the market is stuck in chop.
The ES is in a consolidation phase stuck between two big inflection points. First the ES broke through the $4,492 zone with the 200-day simple moving average (SMA). Now it is trading above the lower inflection point at $4,260 and the low of the week at $4,126.75.
The overall market is trending lower, and volatility remains high. As long as the Volatility Index (VIX) trades above 20, downside volatility is favored.
The catalyst that could influence what we see next is the ongoing earnings season. We are picking up into the heart of this earnings season, anticipating the AAPL report on Thursday night and AMZN and GOOGL coming up next week.
The earnings releases could change the sentiment of the market or add fuel to the fire for selling.
Watch the video above for potential scenarios we could see in the overall market and our focus list of actionable setups moving forward.
Stay Focused!