The NASDAQ index has surged to the upside today ahead of the FOMC rate decision. However there has been a slowing of the run higher near the 50 day moving average at 17581.79. The last two tests of that moving average over the last five trading days have also found willing sellers near the level.
Needless to say, as we head toward the FOMC rate decision, traders will be watching that level for technical clues. If the price can trade and stay above the 50-day MA level, that would increase the bullish bias.
Conversely, if sellers lean against the level and push lower and then extend below the broken 38.2% of the move up from the May low at 17353.82, the sellers would restart the bearish bias.
IN this video, I go through the different scenarios that traders should follow through the FOMC rate decision and going forward. Knowing the technical roadmap is key for traders.
