Monday’s market as we surmised was range bound w/support at 113-04/08 and resistance at 113-24/28 both holding. Wednesday’s FOMC meeting should continue to hold the market in a range as large institutions are sidelined until the Fed speaks. The futures markets are saying the Fed will cut rates ¼ of a point on Wednesday. This is built into bond prices. We see today as another range bound day w/a seller above 113-28 and a buyer below 113-12. Today’s news Consumer Confidence is expected at 100 and should not be a factor. Trade the range today.
F1 Comments: Market is in a bracket until the Fed speaks Wednesday. The market’s bias is sideways through Wednesday‘s FOMC announcement.F2 Comments: Market found strong buying below 13-10 leaving a 6 tick tail. 5-6 tick tails are hard to take out w/out new news. Buyers were present through the rest of the session and the market closed strong. Consumer Confidence is expected at 100 and should only cause a minor reaction. Think the market is in a bracket until the Fed’s rate announcement.
F4 Comments: Analysis was to trade the range. OK to sell 113-11/15 and buy 113-05/09. Multiple signals throughout the session.
