Tuesday’s trade was for the most part an “inside day”. The ES does appear to have possibly completed minute wave 3 of Minor wave 3. If this is the case a minute wave 4 bounce is now due and likely underway. AT the moment the Fibonacci retracements suggest a move to 3888 is likely with additional upside targets also possible. However, as the decline progresses the hourly 20 MA has been showing up as stronger resistance and basically containing rally attempts.
For tomorrow, it is FED Day — the announcement comes at 2 PM EDT with the press conference at 2:30 PM EDT. Along with the FED meeting there remains a major very large Quadruple Futures/Options expiration. The markets are already feeling the “gamma explosion” that is occurring from the strong downside pressure on the markets. I don’t suspect that will decrease between now and Friday or for that matter within the next several weeks.