The main focus, for now, is the FOMC Wednesday afternoon. The Fed is expected to cut by a quarter-point. Wall Street believes that the market will fade the move. But, then again, so does everyone else. It’s a good time to stay light and make sure you manage your risk. There’s plenty of volatility to be had and trades.
Today’s been an inside day for the most part as we wait on the announcement. I don’t think we’ll get much movement before the announcement. You see a lot of chop in the IWM on the weekly chart. At some point, it will break higher or lower. Right now I’m not sure. This could take into next year to play out.
A savvy trader would not try to be a hero. The market remains choppy. Lots of good setups keep getting obliterated. This won’t last forever. At some point, the market will pick a direction. We could rip higher this week. Regardless, Wall Street is expected to plan to play smaller time-frame setups. Towards the end of this week and early next week, will be the time to start to look for swings.