Trader's Daily Notebook: Yellen Keeps the Punch Bowl Intact

Fed Chair Janet Yellen came through for bulls Wednesday, hiking rates by a quarter-point (to a target range of 0.75% to 1%), but then indicating the Fed would move slowly toward hiking rates back to historically normal levels. Put another way, Yellen gently tugged on the punch bowl, but didn't come close to yanking it away altogether. 

Leading up to Wednesday afternoon's FOMC meeting announcement, the E-Mini S&P 500 futures (Es) were trading relatively well. The contract opened at 2368.75, well above Tuesday's 2362.75 close. And aside from the initial 15 minutes of trading when scalpers tried to fade to opening strength, the contract remained comfortably above the session's developing volume weighted average price (VWAP). A brief study of the intraday Es chart below paints a pretty clear picture that traders, aside from those trying to fade the open, should not have been trying to press a day timeframe short position. ...723 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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