Market is holding up the day before Fed meeting ending tomorrow, the once a month event. ES push to half gap low last night and now has moved up 8 points or so in the upper part of yesterday's profit and above CHVN at noon. It looks like wanting to test yesterday's high. My hypothesis of last night was expect ES to fill the gap and parked at a neutral area around the break out point. Now it's more bullish than I expected.
ES closed near day's high again. I guess the big guys are expecting a positive outcome of Fed statement, plus they want a good quarter end. Or, are they going to build it high then drop it hard?
I will wait to see the direction after the announcement and Ben's news conference. I held my urge to enter any position today. Since it's Quadruple week and ES options would be close for trading at 9 AM on Friday, I have to exit my losing positions on Thursday. My exit strategies for this weeks under water options are, 1, wait until Thursday to squeeze out most of time value but risk of let premiums go much higher if the ES stay up after Fed meeting; 2, Exit them tomorrow before Fed meeting with a known loss figure but risk of a recovery if the market drops after the Fed meeting. My situation is similar to last May.
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