The Index futures bounced overnight, but we ended the day yesterday with some weak 3C signals so the start of trade today should be weaker. Ironically a negative divegrence set in to the pre-market 1 min charts and the Index futures gave up gains.
The 7 min charts are starting to really look impressive like this ES, the TF/Russell 2000 chart looks even better.
So I suspect we will likely see the IWM move ABOVE the range soon enough, I would think today either in to the 2 p.m. F_O_M_C or at the press conference after.
Remember this is not a move that can last, I don't think I'll be looking to trade it from the long side as the 5 min charts are still not as strong as they should be and as such I wouldn't trust any bounce, even if it was much expected. If that changes, I'll let you know ASAP.
Otherwise, I'd sell short in to the move at the appropriate time or just be patient and continue to manage shorts that have been doing well, they'll come back with a sharper downturn when this is all over, assuming of course the F_O_M_C doesn't drop a most unexpected surprise.
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