A Look at the Markets as We Head Into Fed Day

Crude oil futures continue to trade inside totally dead intraday ranges with nil volume. Unless someone is working the overnight stretch from midnight thru 6am eastern, there isn’t much of anything to work with at all.

I have no idea or opinions as to why CL went from the most dynamic, volatile futures symbol for years on end to the completely pinned and volumeless inaction of late. All I know is what we see, and reality of present conditions is right there in front of our eyes.

ES and TF diverged thru most of yesterday, with ES trying to ebb higher while TF chopped its way slightly lower, Neither one made it away from their open ranges respectively until the 2pm blab about Fed tapering rumors which are now a constant daily factor. Markets spike-chopped lower, did not quite fill their gaps before v-turn popping right back up into the comfort and security of their open ranges to end.

What the ES did manage to accomplish was filling last Monday’s open gap above. In the process it left yesterday’s gap still open…

… along with four others still below from recent history prior to the risk-on ramp to new market highs. Sooner or later those holes will all be filled in this swiss cheese chart. Could very well get started on that process Wednesday afternoon.

This Wednesday Next
Markets will do whatever they may today, but the next big market catalyst arrives this Wednesday afternoon. FOMC news begins near 2pm and continues into the close (or beyond) from there, according to how veiled or transparent the Fedspeak may be to market interpretation. I’ll treat this morning like any other day and then let the afternoon pace dictate active or passive stance from there.

For more daily updates from Austin, visit his blog at Coiled Markets.