FOMC Eve: Market Faces Key Test After Perfect Technical Sequence

Market Summary The S&P 500 pulled back over 100 points today following yesterday's precise test of the 5755-62 megaphone pattern back-test level. This movement caps a textbook technical sequence that began with last Monday's megaphone breakdown, followed by Thursday's Failed Breakdown recovery from 5564, which sparked a powerful 170-point rally to the exact megaphone retest level.

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Today's retreat reinforces the significance of the 5755-62 zone as resistance, with bears maintaining control below this threshold. The market now faces heightened volatility ahead of tomorrow's FOMC decision, which will likely determine whether bulls can sustain the recent bounce or if bears will reassert downward pressure from this critical technical junction.

Technical Levels

• Megaphone Back-Test: 5755-62

• Recent Rally: +170 points

• Today's Decline: -100+ points

Pattern Analysis

1. Key Sequences

   • Megaphone breakdown

   • Failed Breakdown recovery

   • Perfect back-test rejection

2. Control Zones

   • Bears dominant below 5755-62

   • Failed Breakdown level: 5585

   • Initial recovery targets: 5610, 5636

Looking Ahead

• FOMC impact on technical structure

• Monitor megaphone resistance

• Watch for potential Failed Breakdowns

Follow our analysis for FOMC reaction scenarios and technical developments.