Wednesday is the U.S. Federal Open Market Committee (FOMC) meeting.
We can see on the daily chart of the S&P 500 ETF —SPY that FOMC has been determining the direction of the market. The SPY already tested December 18 , 2013’s previous FOMC day two days ago.
KEY LEVELS
On Wednesday the $177.00 level should be closely watched to see if we continue to hold that level on any news or go through it. If the market likes the FOMC Statement today at 2:00 pm the SPY will continue to remain in an uptrend.
This is a FED driven market and the FED will continue to try and lead the way. Notice the past moves on FOMC for 2013. At the beginning of the year of 2013 there was little reaction to FOMC Statements. It wasn’t until May’s FOMC Statement that we got a big move up on the statement. Then, a month later in June the FOMC sold off.
With all that being said, watch key support and demand on the SPY at $177.00. Today should be interesting since we already have had a pullback prior to any news coming from the FED. Watch for the larger trend to prevail or to be broken.
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