The market is likely at a crossroad.  There is convergence of technical indicators across various timeframes that suggest a reversal is forthcoming.

Deron Wagner will be monitoring the ProShares Ultra Short Yen (YCS) closely for a possible buy entry.

With only three days of consolidation since a major rally, Deron Wagner uges traders to be cautious about chasing the market.

Deron Wagner is inclined to be more cautious despite the recent strength in the market. The uptrend remains intact, but there is evidence that the market is reaching an extreme.

Deron Wagner does not recommend chasing the rally. Instead, he will begin to watch for strong performers that pull back into support.

Although yesterday's price and volume action was bullish, traders must keep in mind that the real reaction to the Fed usually comes one to two days after the meeting.

The recent uptrend remains intact, but many contra-indicators are beginning to provide signs that the market is reaching a bullish extreme.

The actual outcome of today's elections or the specific verbiage of tomorrow's Fed announcement does not matter. The only thing that matters is the market's reaction to those two events.

With Election Day only 24 hours away, the market is likely to make a significant move out of its consolidation pattern this week. The consolidation at the highs favors another upside move, but Deron Wagner is inclined to be cautious in the current environment.

The longer the market consolidates, the more likely the next move is up.  Until the market provides confirmation of a trend reversal, it is prudent to stay with the trend.