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Fed Decision Zone Signals Hedge Opportunity Near $670

📺 WHY THIS FED MOVE СOULD BE SOLD 🛑 Get my newsletter tomorrow: https://t.co/Rqp84Wg39F The market has shown short-term strength going into the Fed today. $SPY has rallied meaningfully from around $662.34 to the $674 area, a solid move given the macro backdrop (AI concerns, layoffs, inflation, oil, geopolitics). Despite all the negative headlines, the market has only pulled back about ~5% from the highs, which signals underlying resilience and leaves many traders surprised. However, the market is now approaching a critical resistance zone (roughly $665–$676). This area is a “decision zone” or “rubber match” level that will determine the next directional move: – If bulls fail to reclaim and hold this zone, bears remain in control. – If price pushes into this zone (especially on a dovish Fed), it may be a good place to trim longs or add hedges rather than chase upside. Here is also a tactical approach to hedging: – When the market becomes deeply oversold (e.g., oscillator was at -51), it’s hard to stay short, so better to reduce hedges. – As the market rebounds and the oscillator normalizes (toward neutral), that becomes a better opportunity to reintroduce hedges. In other words, don’t hedge at extremes—hedge into strength. From a structural perspective, the market may simply remain range-bound within a channel, especially if price pushes into resistance and stalls. So, you should expect continued chop rather than an immediate breakout or breakdown. A few notes on the Fed: – I expect a slightly dovish tone, given global uncertainty. – However, the Fed will still acknowledge inflation, though they continue to frame it as largely transitory (especially war-driven inflation). – Regardless of tone, the Fed may create short-term volatility or “shakeouts” before the market settles. If you enjoyed this video, please ❤️like and 🔁retweet