Abet Chichi2

[chichi2]

ToniHansen= Wednesday brings with it the end of a two-day Federal Open Market Committee meeting. The Fed is expected to continue to leave its key federal funds rate at 0-0.25%. A lot of Tuesday's uncertainty may have been associated with this looming announcement, but I believe that it has a great deal to do with the overhead resistance on the monthly time frames and the momentum of the upside into that level. This has made sellers leery to jump on the downside, while buyers are also cautious and wondering just how far it can go before a greater correction takes place. Be careful heading into the Fed announcement. Volatility will jump in the immediate aftermath and it's a great place for the inexperienced trader to get their head handed to them on a platter! Even I typically wait for at least the second wave of reaction before rejoining.

Source: Toni Hansen, trader and teacher
http://www.tonihansen.com/blog.