The bulls need this sluggish-to-down session. It takes the edge off what can happen tomorrow.
Now, I have seen more than my fair share of runups into big meetings, only to see a major falloff after. We also have seen runups where we keep running up.
But the market is now classically oversold -- at minus three on the S&P's proprietary oscillator -- and that could cushion the blow of what could happen, with a statement that is regarded as too hawkish by those who are asked about it tomorrow. There are a lot of stocks that are dropping hard today, and a lot of stocks that are treading water to the downside, so there is a better base of negativity going into the event.
So the setup's become better.
We just need the same thing tomorrow going into the meeting.