People were selling intraday pops more then they did the last couple of days. However, people were still not interested in selling into weakness. Until that happens the bounce is still alive. The breadth was -65% which seems a bit strong for the little bit we were down. New highs remain low at 13. New lows were over 100 again today at 112.
Price oscillations are clearly dampening out including the overnight sessions. That could easily continue until the meeting results are announced. Lets look at some market internals.
The green/red bar chart and the breadth indicators all had fresh negative crosses today. That may be a warning that the triangle is going to end on the down side. It is definitely possible the bears took control of the market again today. We need downside follow through to confirm that though. The bulls are definitely pooping out. Maybe few people are willing to buy at this level in front of the FED. Maybe the dip buying fuel from the crash has been exhausted. It could be either one or a combination of both. So we wait to see what the FED does or doesn't do and how the market reacts.
Personally I can't wait to get this meeting over with so we can begin to fret about what will happen at the next meeting.
Bob
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