Fed Keeps Current Range Going

As widely expected, and with little fanfare, the Fed did absolutely nothing today except keep the short-term S&P range going.


By Corey Rosenbloom

The non-decision (to do nothing with rates as expected) was well-received by the market, bouncing price up away from support to keep the Rectangle going.

Here’s the current S&P 500 Intraday Rectangle Range:

In the S&P 500 (NYSEARCA:SPY)index, we see the 2,160 pivot as green support (today’s reversal play) and 2,175 as red resistance.

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I’m also drawing a Blue Magnet Midpoint line just shy of 2,170 which has been a shorter-term resistance level.

Let these levels guide you as intraday traders.

We can pull the perspective back to the bigger picture to see the development of the current range:

As I highlighted in this morning’s update post, we have a bigger picture Rectangle Range developing.

Given the recent July rally from last month’s 2,020 level, the index trades just shy of 2,200 in a stellar gain.

However, from July 15 to present we see a clear 15 point sideways range as detailed above.

All things being equal, continue to focus on these levels and the future breakout from this range.