Following the recent pattern, the SPY morning gap closed down to S1/5-DMA, where it found immediate support. Initially weak internals have been repairing since the first higher low, and will soon be challenging the opening highs. I expect we will flatten out going into the FOMC announcement, with a volatility spike soon thereafter. What, you wanted the direction! Come back after the announcement for the red-lined markup comparing this statement to the last one (here).
