The S&P 500 is chopping up and down today, ahead of the Federal Reserve FOMC Policy Statement tomorrow. The charts today should tell us where the markets are headed on this announcement tomorrow. As long as the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) stays above the two trend lines shown on the chart below (at the end of the day), expect a positive reaction to the FOMC statement. If the SPY closes below (end of day), watch out, major downside may be seen.

Jenny Rebekka