Fireworks in the ES Ahead of the Fed Policy Statement

Although the e-SPZ is up 17 points or .8% today so far, viewed from a larger perspective, the price structure remains with the confines of a sideways coil type of pattern since its Aug 24 spike low at 1831.00.

To emerge from the pattern, the index must hurdle and sustain above 1992.75, which will set up a confrontation between it and the sharply declining 50-Day EMA, now at 2018.

For the remainder of the session, short-term traders should be watching yesterday's high at 1974.25, which if hurdled and sustained on a closing basis, will mean that today's action represents a Key-Upside Reversal Day, which is a positive near-term signal that will argue for near-term upside continuation towards a test of 1992/93.

Conversely, if the index stalls beneath 1974.25, then the pre-FOMC range will be bound by 1935.25 and 1974.25.