Old-Fashioned Musical Chairs Before the Fed

Headed into another big FOMC Announcement later today, small caps are looking to recoup recent losses from their relative underperformance to the major indices. Transports, however, remain weak. And biotechnology stocks, which led yesterday, are lagging this morning, in part due to GILD selling of a bit after earnings. But beyond that, the IBB sector ETF had become overbought in a still-corrective chart structure. 

When it comes to small caps, though, the $116.15 level, just above on the IWM ETF for the Russell 2000 Index, remans a good level we have been observing to recognize the consolidating nature of the price action of late. 

Regarding the popular AAPL, the post-earnings bounce is nothing like the AMZN GOOGL rockets we had seen last week. On the updated daily chart, below, a major top is still in play under $120. I suspect the post-Fed reaction from now until the holidays should make or break the AAPL case. 

For now, though, we have a case of musical chairs before the Fed.