The 1356.75 to 1392.50 gap range scenario I pointed out weeks ago has played out nicely here…
The pros locked the range down ahead of the FOMC announcement and enticed VST traders to tighten and concentrate their stops on either side of the range. They ran the bottom side before the announcement (filling the lower gap at 1356.75) and they went for the top after.
The high so far at 1392.25 is just .25 short of my upper 1392.50 gap target, but this initial pullback is likely sellers taking partial profits after the VST stops were run above 1390.
Nothing has changed here in the big picture. The pre-FOMC trap was laid and the folks who can’t transition nimbly from trend-trading to range trading tactics were chopped up as they placed their bets inside the ‘kill-zone’.
In the big picture, 1352.50 continues to be the bull/bear line.