SPX in Limbo

The SPX ended the day forming a spinning top on the daily chart at the 78.6 fib level and closed slightly below yesterday's close. The SPX tried unsuccessfully to breakout of the descending trendline on the daily chart. Still lots of indicision as we're in the midst of earnings season and a few days before the Fed Meeting.

Interesting to note that 7 trading days before the Fed in Sept we also had a bit of a sell off only to become more bullish as the Fed meeting got closer. Last Thursday was also 7 days before the next Fed Meeting so it will be interesting to see how the market trades leading up to this Fed Meeting.

The next level of resistence is at the 1530 level and technically it would make sense for the market to grind up to that level the next few days prior to the Fed. I see that level as a possible pivot with the market deciding whether to pop above it or drop below it after the Fed announcement.

SPX Daily Chart: