As we are heading to tomorrow unknown reaction to the FOMC decision the equity market has enjoyed an impressive recovery in the last two days from extreme oversold readings.

It seems probable that even if the interest hike is in the cards the FED will try not to spook the market.

If we have a slow drift lower before the FED, then likely huge volatility following the announcement maybe the equity market will rally into the close.

I am focused with two ETF:

  1. FAS (Financial Bull 3 x)

Daily time frame:

  • Monday´s Doji has been followed by a large gap up and go
  • The first resistance is at 30 (50 dma)
  • If more follow through is in the cards FAS should remain above the support located at 29

 

FAS DAILY CHART

 

5 minute time frame:

  • An impulsive up leg can be counted completed at today´s hod
  • If this is the case a corrective pullback should give an entry in the long side in the range 28.64 – 28.20

 

FAS 5 MIN

 

2. TNA (Small Cap Bull 3 x)

 

Weekly time frame:

  • Probably TNA (And IWM) have a Top in place.
  • If the weekly Hammer is confirmed by eod next Friday we should expect a countertrend rebound maybe at the 10 wma = 69.50

 

TNA W

 

Daily time frame:

  • In order to open the door to a larger rebound TNA must reclaim the resistance located at 65
  • If this is the case we have the Fibonacci retracements as potential target.
  • The 50 dma would coincide with the 10 wma

 

TNA D

 

5 minute time frame:

  • TNA has also a potential 5-wave up leg
  • Hence if we have a corrective pullback in the range 62 – 61.45 I would be looking to open a long position

 

TNA 5 MIN

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