Investors were at it again, inching the averages back up to their breakout points ahead of key news. This time it’s the FOMC meeting. Expectations are that the Fed will leave the important interest rate language alone. They will likely downgrade the assessment of the economy. However, in recent weeks, Bernanke has made it quite clear that the Fed stands ready to act, if the economy slides further or if they do not get the desired improvement in jobs. The latter is moot. Jobs aren’t improving as rapidly as hoped. However, whatever the Fed might do, in terms of quantitative easing, will take far too long to be of any help during the elections. Congress would need to act with specific tax breaks aimed at new hires. That is highly unlikely ahead of the November elections, as neither party wants to see the other succeed, and this includes allowing the Bush tax breaks to be extended in their current form. On the economic front, it’s hard to imagine from where the good news might come. Earnings season is pretty much behind us. The economic data are for June and July, months in which consumer spending was slow. This is one reason why there is so much emphasis on the Fed. Technically, the averages remain poised to move up to the next level, but needs a catalyst. As the averages move higher, I suggest the stop-losses follow. The 10-week moving average at 1088 is key support. The Fed’s words are important. They need to lay out specifics, and I’m not so sure they are willing to do that at this meeting.