12/12/12 - A Possible FOMC Scenario [11:43 AM Update]

[11:43 AM Update]

60 Min 

So far things are looking good for the initial call earlier this AM. Bears are trying to form five waves down and I have -ve divergence building in all time frames from 1-60 mins.

Still too early to call and so long as the lower TL holds along with higher lows, we'll have to wait and see. Of course it doesn't mean one can't nibble on some shorts with today's high as a stop.


[8:30 AM Update]

60 Min 

Here is something that I can see happening for today and the rest of the week. If this is a bullish leading diagonal, wave 4 may chop around for the next hr and then spike for wave 5 on the post meeting news.

After the spike, as with most diagonals, we see a steep retrace towards 62-78%.

Note the bearish scenario would see the same result. The only difference for the bear scenario would be that the 11/16 low would be taken out.