8 Trades for FOMC | Crude Oil, Gold, E-mini & Euro Futures 04/26/16

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“Life is not about ALL the wrong moves you
made; Life is about the one right move that made ALL the difference.”  – James Lockhart

Notes for Tonight’s Newsletter:

Markets
are preparing for a day filled with FOMC and Inventory News tomorrow; Crude Oil is
bullish with a triple measured-move, The S&P is sideways ahead of news
tomorrow, and both Gold and Euro have decent short-term trends to work with
before the storm breaks tomorrow afternoon @ 2:00pm EST.

E-mini
S&P is trading sideways ahead of tomorrow’s FOMC announcement with a trading-range
and a short-term bull channel which tells us to buy the lows, sell the highs,
focus on failures, and avoid the news tomorrow afternoon.  The trading-range tells us to look for
rotation from high to low so we can buy the lows and sell the highs focusing on
failures on both sides.  The short-term
bull channel tells us to expect rotation from the low back to the high as well,
and we will be sitting on hands as of lunch time tomorrow as this market will
be low volume ahead of the news.

Gold
is bullish and trying to breakout above a flag and triangle pattern this
evening which is going to make it challenging for the buyers who don’t want to
buy so high, which tells us to wait for a correction back to support for
the most reliable opportunity tomorrow. 
The large bull channel is pending and waiting for a ‘first test’ at the
lows, which will be the most desirable area of support on the chart tomorrow,
and buyers will expect price to rotate back to the highs of the channel
thereafter.  The bull triangle and flag
tells the buyers to look for buying opportunities with ‘bear traps’ at the
lows, or wait for a solid breakout-pullback to go higher.  There is also a big measured-move overhead to
act as a runaway target if this market pushes higher ahead of news tomorrow.

Euro is bearish in the short-term but the
sellers have already completed their measured-correction so they will be trying
to complete a third leg down to the low-of-day before the buyers can take
control and try to send price back to the highs tomorrow ahead of the FOMC
news.  The bull channel had control for
most of the day today, and tells us that this move lower is likely being bought
by ‘swing buyers’ who are building a position to go back to the highs tomorrow.  There are two bear channels on the chart; The
narrow bear channel is coming off the highs and sellers will be looking to go
back to the lows.  The wider bear channel
is pending a ‘first test’ and will be an easy location for sellers who are
patient to get into their positions at a higher price tomorrow.  The measured-move around 3300 will act as
support and resistance for both sides tomorrow.