How to Handle This Morning's Gap-Up Open

Here's how we're trading ahead of the Fed

Technical Edge — 

• NYSE Breadth: 51% Upside Volume

• Advance/Decline: 47% Advance 

• VIX: ~$25.75

Apologies on the late charts. Had some technical issues on my end. Cheers

S&P 500 — ES 

Yesterday was a chop-day/theta burn ahead of the Fed’s rate decision on Wednesday. I wouldn’t be surprised if today is too. 

On the daily chart, the ES continues to chop around at a key area, failing to break lower but stuck at the 50% retracement and key pivot from the summer. 

If it can clear 3925 and more importantly, sustain above it, then bulls may jam this up to 4,000. If not, 3875 to 3880 remains in play on the downside. 

A break of this zone puts the 10-day and 50-day moving averages in play near 3835. 

ES — The Trade