U.S. Mid-Session Brief: More FOMC And An E-mini S&P 500 Teachable Moment - Forex News by FX Leaders

U.S. Mid-Session Brief: More FOMC And An E-mini S&P 500 Teachable Moment

Posted Thursday, August 17, 2017 by
Shain Vernier • 1 min read

Earlier today, I outlined a potential trade for the E-mini S&P 500 futures. Unfortunately, it failed to set up properly and some good price action was missed. If you want to be a trader, get used to it. At times, getting in on a great short-term trade can be a challenge.

But don’t lose hope; there are plenty of opportunities in the markets!

Teachable Moment

Here is the thirty-minute breakdown of the Emini S&P 500 futures short from earlier. If you were looking at the SPX500 CFD, the price action is very similar:

ES 30 minute E-mini S&P 500- No compression

As stated, I was looking for a hard test of the 38% Fibonacci and a retrace. Sideways trading for at least 30 minutes gives credence to a forthcoming breakout under 2457.25. Risk and reward would be clearly defined according to intraday symmetry.

Of course, sellers did not wait and price ran under 38% with ferocity. If you got in on the action, well done!

More FOMC

Later on in the U.S. session, FOMC members Neel Kashkari (1:45 PM EST) and Steven Kaplan (1:00 PM EST) are due to speak. The comments are not likely to spike short-term volatility in the markets. However, investors will be looking at the tone of the speeches for any hints at coming changes in FED policy.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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