The Fed Does Nothing but Keep the Current Range Going

Jul 27, 2016: 2:15 PM CST

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

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 index, we see the 2,160 pivot as green support (today’s reversal play) and 2,175 as red resistance.

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.

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Corey Rosenbloom, CMT

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1 Comment

One Response to “The Fed Does Nothing but Keep the Current Range Going”

  1. Duggas Says:

    It’s really strong going here, but it’s tough to say how far this is going to go, I always trade with proper approach with step by step planning and that’s greatly helped with a broker like OctaFX, as they have fantastic offers and facilities which include having lowest possible spread down to 0.1 pips plus there is also huge rebate scheme that gives back up to 50% on all trading orders plus much more, it’s all picture perfect for me!