Yesterday was just another day of sideways price action in the S&P 500 (FXCM: SPX500). Today isn’t likely to be much more exciting than days past until after the FOMC rate decision and release of its policy statement at 18:00 GMT.
There are no expectations the Fed will make a change to rates today, so the focus will be on any language changes the Fed might make in its policy statement which provide further scope into the timeline of a possible rate hike. How the market reacts, time will tell; no predictions on this end will made about which way the Fed will lean with its language and which way the market will move as a result.
The S&P has been suspended in air for about two weeks now, and we have gone over reasons recently why the market looks more likely to decline than rise in the short-term. (You can check details here.) But until either the top or bottom-side of the recent range is broken, then there is little to do except for perhaps fade the upper and lower-bounds.
Resistance is in the 2174/78 vicinity while support comes in around 2160/55. Today would be as good as any day to see either or both sides of the range breached. A clean break of either support or resistance will be needed to pique our interest. Today could be that day.
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