The Air Up There

For ES I don't see any resistance between 1138 and 1148 (115.24 on SPY). This means that ES could easily rally another 10 points today before any pullback takes place. The market is overbought but it has been overbought for a while and has not pulled back so I see no reason why ES will pull back here either. Still if ES does pull back then either ES will find support from trendline A at ~1127 or it may drop a little further to support from trendline B at ~1120. Dropping to 1120 would essentially wipe out all of yesterday's gains and I can't see this happening unless the FED raises rates today.

I probably won't be making any big trades until after the FOMC minutes/rate decision. The results usually produce a ton of volatility in the stock market. From my previous observations, the initial reaction is short and a fakeout. Then the stock market usually reverses and maintains a direction opposite to the initial reaction for the remainder of the day. The next day the stock market has been known to reverse back to the direction of the initial reaction. I don't have any explanation for this but have occurred this exact behavior numerous times. The last FED meeting results followed this trend exactly.