Bulls continue to hold sway, although they could never be accused of muscling the futures around on Tuesday. It was just more vamping ahead of whatever announcement the Fed has in store for traders on Wednesday. A press release is due out at 2:00 p.m. ET, and although no one could have any doubt about what’s coming and what the perennially dithering Open Market Committee intends, the opportunity to push the broad averages higher on any ‘news’ at all is unlikely to go unexploited. The announcement will be bullish ostensibly, since we’ve been hearing for a month about how tightening ‘might’ come in September. Apparently not, not that it matters. Night owls please note: With the tightest stop-loss you can handle, try bottom-fishing at the 2124.50 target of the small abc pattern from Monday’s high._______ UPDATE (Sep 21, 12:08 a.m. ET): Tonight’s weakness reversed from within a tick of the 2129.25 ‘secondary’ pivot of the pattern alluded to above: 60-minute, a=2146.75 (9/19); b=2127.75; c=2143.50. The 2124.50 correction target is still valid, but it will become less enticing if it is not hit within the next few hours. _______UPDATE (Sep 21, 10:18 a.m.): The futures never quite got down to 2124.50; the overnight low as 2126.25. The expected rally that has ensued is targeted on 2154.25, shown in the original chart from two days ago (see inset). _______ UPDATE (5:14 p.m.): Check my posts in the chat room, beginning with the one at 16:56, for trading guidance on Thursday._______ UPDATE (Sep 22, 9:39 a.m.): Buyers turned double resistance at 1259.75/1262.25 into chop suey, threatening to extend this short squeeze until the very last bear has been flayed and turned into a rug.
