Pristine Trading
0
All posts from Pristine Trading
Pristine Trading in PristineTrading.com,

Market Comments for March 19, 2015

 

Yesterday the market gapped down and made no attempt to rally throughout the entire morning and lunch. The opening bar was the high of the day and the market bled lower going into lunch and set the low the day at the 1.30 reversal time. The 2.00 FOMC rate announcement had a very unusual effect on the market. It rallied initially, and then rallied continuously setting the high of the day going into the 3.30 reversal time and the rally left a huge green bar on the daily chart. The market stayed strong into the close and a large green bar was left on the daily chart. It is very unusual for the FOMC to have that strong of a one directional effect on the market.

We generally advise traders to avoid trading the FOMC announcement. Not that there is not movement, but that is simply different than what we do the rest of the time. If you are adept at it, it can be a time with lots of movement. The sloppiness generally continues throughout the following morning. And this morning is going to be particularly difficult because there is no real pattern left on the chart. The natural tendency would be for that void to fill because the market is four days up and there is quite a distance back to the support area at “1”. But how prices get there will be difficult to judge before we actually see prices print this morning. That will be some bias for the market to fill that void today, but it may or may not happen right near the open.