Waiting on the Fed

On Tuesday, the market was treading water, waiting for the tomorrow's Fed announcement on their bond-buying program. All three indices had narrow range days. There was neither a strong bullish or bearish statement. The Nasdaq lost -5 points (-0.15%), and the S&P also lost -5 points (-0.31%). The Dow closed down -9 points (-0.05%). Volume decline relative to Monday. All eyes are on the Fed.

The market is still sitting at high risk for a correction, and the market strength is bullish under selling. There are many stocks experiencing weakness, despite the number of stocks that have had recent breakouts. This means tomorrow's announcement could lead to a potentially volatile day. 

The daily ADX readings for Nasdaq, S&P, and Dow are 12, 17, and 15, respectively; these are weak readings. Weakness and low volatility generally leads to a large move, up or down, so a period of range expansion is likely coming. Tomorrow is a wait and see day.