The pattern on the daily chart looks very similar to the price action just before the sharp declines in early May and mid-June and we suspect a similar sharp decline could be on the cards now.
However, a strong break above 1350 would suggest that the 1180 bottom was potentially the low for this decline and a move back up to 1425 would be the more likely scenario.
Either way, we should see some strong price movements today as traders open new positions in the aftermath of the data releases and FOMC announcement.
US equities are still in a strong uptrend, though are pausing near to all time highs, oil is attempting to hold onto gains above $103 and the dollar has stabilised following a sharp decline and looks to be ready to move higher.
Today's video for subscribers looks at the chart patterns in more detail and our thoughts on today's announcements.