FED/ FOMC Tactical 18hr trading strategy:
1. With active structural shorts from 2180 (previously discussed/ entered) take profits "early" into the intermediate lows at 2100-2120 that we are likely to see into Fed volatility given hawkish surprise which may or MAY not occur.
- Taking profit even at higher levels (if the hike surprise pricing is less aggressive...
SPX downside to 2000
1. Total CBOE Equity option volume broke Brexit highs and 1YR +2StanDevs at 36 to trade at 38 indicating we are entering an aggressive sell-off period (holders of underlying have scrambled to hedge their exposure in a fashion more aggressive than brexit! - which is particularly saying something given that we saw SPX trade 10%...
Market sustain drop pressure as we advised before, while trades below 18670 may push market for farther drop toward 18300-20 zone. From that zone 18300-20 will expect market to head for rebound correction which will be protected by 18245 support level
Level 1 18300-20 18510
Level 2 18240 18600