Small Window for a Rally

With less than a week till the much awaited FOMC meeting with the now expected dovish Powell, there is a small window for a rally to form as we are now on trading day #8 of the downtrend since the market topped on December 3rd on US/China trade truce euphoria.  That is enough time for investors to have reduced their equity positions, and there is evidence that mutual funds & ETFs have had huge outflows over the past week.  Emphasis on small.  It is a dangerous market to be long for more than a few days.  This is only for the nimble, not for traders with much longer time frames.  

This should set up a short term tactical opportunity to buy weakness today to sell into any rallies next week ahead of the FOMC meeting.  Traders are probably getting adjusted to the new pattern now:  Bottom a few days ahead of a big event (October 30, ahead of midterm elections a week later, November 23, ahead of G20 meeting a week later), and rally strongly into the anticipated event and then have one last euphoric rally for a day on the news and lifting of uncertainty, only to sell off like a screaming banshee afterwards.  

So I expect traders to add back to equity exposure next week, expecting Powell to give the market what it wants, and I am sure short sellers will also be actively covering to get flat ahead of Powell, wary of getting squeezed again on a big event.  Its all game theory and psychological warfare, the fundamentals are crap, the only way to make money on the long side is to play the hot potato game, and pass the potato before it burns your hand.  

Looking to buy SPX today, to hold into the FOMC meeting, and sell right before the meeting.