-080112.jpg "Click to enlarge")
8/1/2012 FOMC Statement / FED Funds Rate (0815 HI time / 1415 EDT)
Forecast: n/a
Actual: n/a
SPIKE/REVERSE
Started @ 88.88 (0813)
1st Peak @ 87.92 – 0815 (2 min)
96 ticks
Reversal to 89.26 – 0824 (11 min)
134 ticks
Notes: Report released 2 min early, but the FED largely continued their theme of inaction, leaving current policy unchanged and not hinting at new policy changes in the future saying “wait until the fall”. This caused a large short spike of nearly 100 ticks slicing through the PP Pivot as the dollar rallied, having priced in easing action by the FED, but not getting any. The bears could not sustain the selling as nearly 60 ticks were left on the tail of the :15 bar. After chopping sideways for 5 min, the market rallied to peak at 134 ticks on the reversal on the :24 bar, corresponding to a correction from the rally on the dollar. The reversal was restrained by crossing all 3 major SMAs.