Wednesday delivered another Balanced Rotational Day with a very prominent POC. Value was overlapping to higher, however we are still within a 4-day Balance with merged POC unchanged at 1435.25. Notice that the 2 poor highs mentioned in yesterdays blog post have been repaired.
Market is waiting on the outcome of the FOMC meeting that concludes tomorrow. Expectations are high with respect to further QE announcements - if the Fed fails to deliver, I am anticipating a sell off. If the Fed does come out with positive statements - the rally continues. 1424.75 remains a key downside reference - breaching that level with conviction confirms a breakout failure above the prior 2012 highs. On the upside -we came within 2 ticks of 1441 - a key reference that I have mentioned several times in the last week.
The odds are high that we may test both ends of this 4 day balance area tomorrow.
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