The day of the FOMC meetings usually sees some activity in the first 30 minutes of trading, then a long spell (up until about 1:40 pm EST) when prices just meander sideways, usually unable to develop followthrough in either direction.
I have been expecting the current consolidation to see an exhaustion of buying power resulting in a rollover and a retest of the price range of Sept. 21 (S&P 500). An S&P 500 close over 1110.61 would force me to abandon concerns about a retracement and I would have to view the 1110-1052 area as support.
The S&P 500 finished Monday's session inside resistance which is 1101-1111. Above 1111, the next resistance is 1114-1135.52, resistance becomes thick with prints of 1123 and higher. The index has an important price support at 1052. A close below this level opens downside risk for a move to the next layer of support: 1022-1000. That is a "close below" 1052. I have had an overnight system which warning that a close below S&P 500 1085.61 would increase downside risk for a retest of the 1070-1050 area.
The Nasdaq has immediate support 1759-1726 then 1719-1683 with a focus 1717-1711. The index finished Monday's session at the upper edge of resistance formed on Oct. 26: 1767-1793.
The Nasdaq has major resistance 1782-1934. Resistance becomes thicker with prints of 1825-1887.
The DJIA has immediate resistance at 9400-9605.
The DJIA has critical support at 9014-8951.07. Cherney is market analyst for Standard & Poor's