I just noticed a very important event on the economic calendar that will likely have a major impact for trading on Tuesday and Wednesday.
Fed Chair Dr. Yellen will be addressing Congress for the semiannual monetary policy testimony before Senate Committee on Banking, Housing, and Urban Affairs on Tuesday. She will repeat the same thing on Wednesday before the House of Representatives Committee on Financial Services. Both events are scheduled for 10am ET.
As I have stated several times in the past, usually the SPX will drop when the Fed chair is speaking then reverse to the upside midway into the testimony or after it, and continue higher the next day (Wednesday). But if it doesn't drop during the testimony it means the market will close at the highs (big rise). Also, if it drops with the testimony but doesn't reverse midway into or after it, it means it is going to close at the lows. I expect the former to take place based on my charts. So my plan of action remains the same for tomorrow.
Keep this event in mind so that in the future if I forget to address it the day before the testimony you will know what to do. It happens only twice a year so it is hard for me to keep tract of it. Usually I notice it when it is too late (like now).
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