An up day for NQ on Monday. The Fed is going to starts its September policy meeting on Tuesday and will announce its decision on Wednesday.
It is highly expected the Fed will raise short term Fed fund rate by 75 basis points and it has been priced in to the market. What is important will be their statement going forward. Are they will to continue to be aggressive with inflation fighting, or are they going to let inflation run hotter.
Their statement can move markets, at least in the short term. If the Fed is dovish we could see a larger bounce coming which can last for two or three weeks to relieve the current oversold condition on the daily time frame.
The longer term timeframe is still bearish regardless of whether is dovish or hawkish. Asset deflation will continue to intensify.
So, on Tuesday we should continue to expect choppy non-trending trading pattern. with key intraday inflection price level at 11,900.
