US equities added with the E-mini S&P 500 up by about 0.7%, Nasdaq climbed 0.6% and the Dow rose respectively 0.6% ahead of the Fed interest rate decision as investors awaiting the outcome of the Federal Reserve’s two-day policy meeting.

• Lower-than-expected inflation read of about 7.1% vs 7.3% boosted the markets higher in yesterday’s session while the indexes bounced back again.
• The central bank may hike interest rates with about 50 bps after four consecutive 75 bps increases which might be supportive for markets.
• Still, the solid jobs report might lead the central bank to hike larger as investors monitor the data of the manufacturing PMI, jobs and recent inflation read to get clues about the rate hike path.

The daily interval establish a balanced price range while the market soared above the upper balance extreme and Year’s developing VWAP by the mentioned softer-than-expected inflation report, selling back into the balance area and closing with a selling tail. However, the median-term perspective have its bullish nuances as the market trades above the Quarter’s value area, depending on the interest rate data today – a lower read would be bullish while a higher rate hike should be bearish for the equites.

Daily interval with a balanced price range between the Year’s developing VWAP and Quarter’s value area.

Market participants were positioned with a long exposure around the lower value extreme of today’s trading session, leading the market towards yesterday’s VWAP close level which may serve as level of resistance or target for long liquidations.

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