This week’s FED meeting will be crucial because the market is trading at a critical support zone.
Let’s take a look at the QQQs. After a decent bounce last week based on some earnings (AAPl AMZN FB and GOOGL), we closed a very week, and even the AAPL could not push the market higher.
The current support zone is significant for a potential bounce, but this will likely be short-lived.
Last time, just before FED, the market made an 11% rally before it headed back lower.
Going into events like FED, an essential thing as a trader is to stay patient and wait for the best risk to reward setups.
I see two possible setups after the FED meeting:
For the QQQs, the first setup will be a bounce type of trade: long into the 310 area and a stop below.
The second idea is short after the bounce. We have to see where the next stop point after a potential bounce will be and work with some of the resistance areas: $330, $339, or $350.
Until then, stay patient and trade well.