Bearish outlook on FOMC day turning Bullish?

07/29/2020 03:11 PM - By Brian Casto
This morning our test showed a likely Short Bias on FOMC day following an opening Gap Up.  But now at 3pm it seems to be reversing to a Long Bias for the Future Indices and perhaps for the market in general.  This has only happened a small number of times historically.  Examine the setup below and watch the video.

Opening Gap Direction - Up

Market Status - The morning Gap Up led to a slow but steady rise.  Since the FOMC announcement about 30 min ago we continue to go higher

Instrument - ES, NQ, YM, RTY

Trading SetUp - Time Based Entry, trading in the top 25% of the Intraday Range.

Market Trend - Above the 200 Day Moving Average (200MA) and pushing  about 10 points higher

Trade Type - Long, last hour of trading

Entry - 3:15 pm ET

Exit - 4:15 pm ET (Market Close)

Brian Casto