The previous letter laid out a bullish bias as long as critical supports held, with a dip and defense at 7668 or a breakout through 7689 as the ideal SPX long entries, targeting 7702, 7716, and 7735. That setup played out. The 7668 level held multiple times overnight, and after a swift drop at the opening bell, support was found just above it at 7677, the low of day. That set the stage for a strong rally through 7689, 7702, and 7716 to a high of day at 7736.24, right at the 7735 target. $Eversource(ES)$ _F
With the FOMC announcement coming up, $SPDR S&P 500 ETF Trust(SPY)$ could see a meaningful move either way. Implied volatility is likely to pick up, which could make options contracts more expensive. The period during and after the press conference is worth watching closely, since market reactions can often lead to significant price movements. Entries need to be chosen carefully, positions sized properly, and going further out on DTE could help soften the impact.
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