The markets are trading flat prior to tomorrow's Fed policy meeting. The Dow, NASDAQ, and S&P all traded flat on the session.

I expect the market to continue trading flat. The market is so Fed driven these days that it would take a major event to really move the market prior to tomorrows 2:15 ET FOMC announcement. Volatility will likely increase once the FOMC statement is released as traders make sense of the Fed's comments. I expect a bullish reaction if the Fed reiterates that a pause is in order, and a bearish impact if the Fed suggests that another rate hike is in order at the June meeting.

U.S. stock futures are flat, suggesting another flat opening. The yield on the 10-year Treasury Note seems to have found its comfort zone at 5.13%, but will likely move with the rest of the market after the Fed policy meeting. Gold continues higher, currently at 683.50 an ounce, while oil remains below 70 at 69.86 per barrel.

The Railroad Industry is in a bit of a bull market. With oil prices higher and manufacturing picking up in the U.S., coal driven transportation is making a comeback. That is why I am bullish regarding the pullback to the uptrend line that Union Pacific Corp (NYSE: UNP) has made. The pullback has also pushed UNP's RSI levels to their support level at approximately 50.

Andy Swan is co-founder and head trader for DaytradeTeam.com.  To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.