ES Morning Update October 11th 2017

0
1072

Another day of the same... just waiting on the Fed it seems.  I think we are super close to a top and few nice pullback, meaning a multi-day one.  On the bull side I think they could muster up another 10-20 point on the upside if some positive news comes out from either the FOMC meeting or the tax reform bill that Trump is pushing.  Remember, the market has already built an interest rate hike for this December and the tax reform being successful.  If either of those fail I think we'll see a good correction.  If both fail... it could get bloody!

For today though I'll look to add more shorts if I think the setup is right.  For that to happen I'd like to see a muted reaction from the meeting or a fast spike higher that falls back down fast but still closes green for the day.  Meaning if it kept falling and closed red I wouldn't add to my shorts but look for a bounce back up on Thursday to close green.  I'd rather close green today with a small move up that should be an exhaustion move.  It's tricky as we don't want any news to be too positive or else it's momentum will carry over into Thursday.  Best to just have a "nothing" reaction and move up a hair to close a few points positive.  Then tomorrow let everything settle in with traders so they can come to the conclusion that they sell as we are too overbought this high up to hold it without some kind of pullback.