Good Morning, Traders. ZZZZZZZZZzzzzzzz, waiting on the fed. Two day meeting kicked off yesterday but the main event is today at 2:15 when we get the decision on interest rates. Markets acted accordingly, doing absolutely nothing on lower volume to boot. Notice in the chart above that we had an "inside day", which is one in which the entire range of the day is inside the previous day's range. A form of volatility contraction that makes things difficult for intraday trading. Top line figures closed divergent with the Dow and S&P in the red and the Nasdaq closing almost 3 points higher. Breadth was also going sideways most of the day with NYSE declining volume outpacing advancing volume and vice versa on the Nasdaq. ShadowTrader Core Sector List completely split as well with half of the sectors gaining off the open and half losing. Tug of war. So, where do we go from here is the big question. Fed should shake things up a bit even though theres an 85% chance that they just follow through and raise another 25 basis. If and when it does, keep some tabs on the annotated support and resistance areas above on the S&P. The main resistance is still the 1310 level which would be a test of the prior highs for the year. However, before we can test that, there is the 1304 just above which is the top of a trendline, and the 1300 below which is a bottom trendline. Note that the two lines are narrowing indicating a snap should be coming soon either way. If we breakout upwards, keep broker-dealer stocks on your radar. The weekly $XBD (Amex Securities Broker/Dealer Index) is one of the finest looking charts out there and is showing all signs of more room to run if the broad market can get in gear. Expect the morning to be flat and the afternoon session to be a bit more interesting after the announcement. You may want to hold off on entries for swing/position trades until after the fed does its thing. If there is a violent move to either direction, use it as tool to measure the relative strength or weakness of your own stocks.

Peter Reznicek is the Chief Equity Strategist and a principal of the Prana Fund, a domestic hedge fund, and ShadowTrader, a subsidiary of thinkorswim which provides coaching and education to its clients on both intraday and swing trading of equities. For a free trial to the full version of The Big Picture or to learn about ShadowTrader's other services, visit shadowtrader.net or send an email to preznicek@shadowtrader.net.