The futures are down during the overnight session, as I was expecting them to be. Referring to chart 1 below, yesterday's bounce brought red
wave X to a completion, giving way to the next
abc zigzag whose
wave a will unfold and conclude shortly after the open. However, the dip will be bought ahead of the FOMC meeting, bringing the second
wave b to a completion just in time for the announcement this afternoon.
Look out for a mini-short squeeze minutes ahead of the decision.
(Place mouse cursor over chart to enlarge)
Chart 1. The anticipated decline should unfold somewhat as sketched.
Here's how we played the last FOMC meeting which it coincided with the December correction:
12/13/2011 - Waiting on the Wizard of Oz
Trade Well,
Peter