Operating in Close Quarters

Headed into the FOMC Minutes at the bottom of the hour, stocks are largely consolidating the violent reversal down since Monday. Biotechnology issues continue to act as a drag on the tape, throwing a wrench in even the enticing long setups like BLUE. 

Regarding the S&P, the 30-minute chart of the SPY ETF, below, illustrates a possible bear triangle consideration with $214 acting as a ceiling of sorts. If bulls can crack above there, it could easily give them some breathing room and stave off another bear raid into the bell. 

But given the amount of stocks which were set-up to go higher on Monday and faded hard, I am inclined to stay defensive and patient until I see a bit more evidence that the pullback is over.