This afternoon at 2pm New York time we have the Fed Announcement. This year, so far, has seen most markets making new lows. Between the crisis in China and the rising interest rates in December, will the markets tank today after the announcement. Most of the higher timeframe charts indicate that the markets have been moving sideways in anticipation of what the Feds are likely to do. Last month they raised interest rates and three more are expected this year. Will they raise the rates today or keep the current rate? If they maintain the current interest rates, how will the markets react? Will investors see that as a good sign or bad? Either way, the most important aspect for intraday traders, trading the announcement, is which markets are likely to move the most after the rate announcement?
Fed Announcement – Which Markets will Move the Most?
I have done extensive research on which markets actually move the most immediately after the Fed Announcement, in points or ticks plus in dollar amounts and liquidity. These are the three most important concerns when trying to trade this extremely high volatile market report.
The markets that move the most in points are:
- S&P 500
In dollar amounts the markets that move the most are:
However, it is not just about points or dollars in movement. This is an extremely high volatile market announcement so liquidity (the ability to get in and out of the market fast) is extremely important if trading this market report. Looking at liquidity, the best market to trade during the Fed Announcement is the S&P 500, followed by the Nasdaq, and Dow.
To view more information on trading the futures during the Fed Announcement, read my original article on the movement during this report.