FED plays with Spinning Top

What will the FED do or decide tomorrow, at its meeting, and what will it announce in the press conference that follows it?

SP500 Cash Index - Daily - Fibonacci 55

As we had noted in comments section in prior days posts, yesterday was the Fibonacci 55th day since the up trend began. You can see this on the horizontal ruler for yourself, above. It seems fitting, then, that at least some sort of down movement occurred today. 

But, a spinning top is just that - one of several sorts of candles that could indicate a topping area. As a standalone candle it would not mean much, although downside follow through including a lower closing candle tomorrow might provide a better indication of a high in place.

As usual, the powers that be (the banks, the 'smart money') are leaving it to the day of FED meeting to make the determination on what happens from here. Do they do that because they know they can likely maneuver through the volatility better than the retail trader can?

In the Dow, today's candle created overlapping waves, and in the S&P500, it did not. Remember, the Dow has not made a new high since February as the S&P500 cash index has played power forward. Today, the Dow went back down to touch it's 18-day simple moving average (SMA), or it's line in the sand before price rebounded off of it.

This is a good time to start watching the slow stochastics on the daily ES, as well as overlaps on first waves. A price overlap on 2,825 would likely be of some significance.

Have a good start to the evening,

TraderJoe