Place Your Bets Here Before the Fed

Before we get to the FOMC on Thursday afternoon, transportation giant Fedex is sure to attract attention tomorrow morning as it is easily the largest component by weight in the IYT, sector ETF. 

FDX is a major transport we have been tracking since the spring months, inside Market Chess Subscription Services, due to the well-defined support breakdown around $162. 

Since then, the stock has attempted to stabilize and is staging a sharp rally today ahead of earnings tomorrow before the opening bell. If the bounce does continue, I view a move up to $162 which then falters as presenting an excellent short entry, with a defined risk above that area and worthwhile reward if another leg lower ensues. 

The same may be said about the S&P 500, though I suspect the 1980 level, where spot price currently is, could prove to be a short-term sticking point into tomorrow.