Expectancy of broken trend day pattern, twisted with Fed announcement, did fully realize at the past rambling 23rd september session. We have started the day with usual internals indicating downside trend day: 1) almost no TICKs above +600; 2) materials & energies were underperforming late in the morning (while those sectors were among the strongest, outperformers, the day before); 3) and ES was below VWAP. The only issue not arguing for downside trend day was ES placing relatively to pivot point or vice versa. Only after first half an hour of the main session, ES finally touched pivot point (PP). In a true downside trend day pattern, ES start the session below PP & soon touching S1 (1st support level). Tell the truth ES dynamic relatively to 50 EMA on one minute chart was also not OK. If it’s a downside trend day, ES never should appear above that moving average.
But i'm just trying to find some similarities in the fed days. Ones again, as i posted yesterday, today i had expected exactly such king of patterns and partly i have faced them.
Back on track, soon light version of downside trend day was broken as following issues, in term of appearance, have showed up: 1) as well as Nasdaq Composite & Russell 2000 futures, ES didn’t post lower low; 2) ES strongly pulled out above 50 EMA on the minute chart and 20 EMA soon did the same; 3) TICK climbed above already +800.
That is it. So even in usual volume dwindling down environment ahead of 215 PM ET Fed announcement, just according to today occurrence, as well as occasions on 24th june & 12th august, it appears, in a Fed days, the market do like to enter trend day and later broken trend day modes.
But i'm just trying to find some similarities in the fed days. Ones again, as i posted yesterday, today i had expected exactly such king of patterns and partly i have faced them.
Back on track, soon light version of downside trend day was broken as following issues, in term of appearance, have showed up: 1) as well as Nasdaq Composite & Russell 2000 futures, ES didn’t post lower low; 2) ES strongly pulled out above 50 EMA on the minute chart and 20 EMA soon did the same; 3) TICK climbed above already +800.
That is it. So even in usual volume dwindling down environment ahead of 215 PM ET Fed announcement, just according to today occurrence, as well as occasions on 24th june & 12th august, it appears, in a Fed days, the market do like to enter trend day and later broken trend day modes.
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