Will The Fed Be Our Catalyst Tomorrow?

The market is simply meandering between support and resistance, and has yet to commit. So, I will simply review quickly the options before us.

My primary count has us in a (b) wave triangle, which, when complete, will resolve with a drop lower to the support box below in a (c) wave. Within that triangle, I am still questioning whether the d-wave is done. But, should we move through the 7480SPX region, then we are likely completing the e-wave of that triangle.

As long as we remain below 7480SPX, then we may still be in the d-wave of that triangle. But, as noted yesterday, we must remain over the b-wave low of 7294SPX to maintain the triangle count. Should we see a more immediate break down below 7294SPX, then it would suggest that the (c) wave decline is already in progress and it is taking shape as an ending diagonal.

And, of course, should the market begin an impulsive move through 7580SPX, then we will have to strongly consider the yellow alternative.

Those are our smaller degree parameters, and I am simply going to assume the market is waiting for the Fed to say something. Whereas the substance of what they say may not be meaningful in general, it seems that it may be a catalyst which the market will blame for striking that match.