Trader's Daily Notebook: Love Affair With the Fed Is Still Going Strong

I can't remember who first uttered the phrase that traders love to love the Fed, but it certainly described Wednesday's price action to a tee.

During the Globex session, a couple of hours before Fed Chair Janet Yellen's testimony, I pulled a quote on the E-Mini S&P 500 futures (Es) and found it basing smack-dab on top of our 2427.75 area of interest. My assumption at the time was an open near current levels would put option No. 1, discussed in Wednesday's Trader's Daily Notebook, into play. But as you can see on the chart below, the moment Yellen's remarks hit the tape, the auction exploded to the upside and we were testing 2435.50 to 2436.50 (our primary upside target for the day) as the regular session got under way....513 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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