Today, at 2:15 pm ET, the Federal Open Market Committee (FOMC) will announce their latest stance on interest rates and economic policy.

This Wednesday afternoon, the FOMC will announce their latest stance on interest rates and economic policy. As many traders and investors know, the stock market has a tendency to be quiet ahead of most FOMC meetings, and extremely whippy and volatile immediately thereafter.

Over the past two weeks, the price gains of the major indices have been accelerating at such a rate that it is unlikely such momentum can be sustained without a pullback, or at least a bit of price consolidation.

The S&P could easily hang out around its 20-month moving average for several months before resuming its long-term downtrend.

Next stop for the Nasdaq could be its 61.8% Fibonacci retracement, around the 2,251 area.

Deron Wagner writes that while the reward-risk ratio may not be overly conducive to excessive new long positions at this time, it's wrong to be short right now, at least until the market proves otherwise.

The one thing lacking from yesterday's bullish intraday reversal was strong volume.

In the event of a retracement in the coming week, the lows of September 2 and 3 will come into play as key levels of short-term support. Since those lows were higher than the previous lows of mid-August, the bullish trend is technically still valid.

If a correction were to occur at current levels, it would more closely resemble a short-term "double top" pattern.

If any of the major indices are to head back down to test their "swing lows," the Dow is likely to lead the way lower.