SP Consolidates Ahead of Fed.

A typical FOMC day in my experience, is for the mkt to be quiet up until mid/late morning when it starts a modest rally into the announcement. On the announcement it gets a spike, usually up, immediately followed by a reversal.

The SP can be seen as having a 5 wave down from 1100 to 1028, for 1 down of larger degree. If the fed provides a pop, 1065 is the 50% retrace as well as a previous high. Risk of a 3rd wave down is HIGH.

Note the RSI is no longer oversold. On the daily charts it is back in neutral territory.


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