December 13 Chart of the Day - S&P 500
If you've been following our Chart of the Day posts and have benefited from one or more of them we ask that you consider participating our NEW Pay It Forward - Traders Helping Traders program.
Once again the S&P 500 (/ES) is our chart of the day ahead of the final scheduled news catalyst for 2023 - the FOMC Statement and follow up press conference with Fed Chair Jerome Powell starting at 2pm eastern today.
Last FOMC Day the S&P 500 futures (ticker /ES) initially spiked up 15 points, spiked down 20 points, then surged 45 points all in the 2hrs after the FOMC statement and follow up press conference.
Be prepared for similar volatility this afternoon... before then anticipate potential choppy or sideways price action.
FOMC days can be notoriously the toughest sessions to trade. They are often unpredictable, random, volatile, and trappy. On these days, our focus is entirely on reacting to price levels/plan, and in particular staying out when in doubt.
Quite literally anything can happen, and traders need to be prepared for any and all potential outcomes.
Ultimately, the media seems to find narratives that conveniently ride along to fit... but is it news or technical analysis?
During days/weeks like this it can be best to zoom out and trade only higher time frame levels ie. 4hr, daily, even weekly levels.
We've included a weekly view identifying potential upside targets as well as downside targets depending upon what price decides to do from which investors and traders can develop their plans from.
Keep in mind as the old saying goes... "the trend is your friend" until it isn't.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
We'd like to hear from you in the comments sections.
Have a chart you'd like to see featured?
Send requests at https://stockchartpros.com/community/contact
Would you like charts like this delivered directly to you every day? ChartPros Trade Room is offering an OPEN HOUSE 7-day free trial at this link.
