Here we are again with another highly anticipated FOMC announcement due out this afternoon and the market is showing signs of strength.  Generally, you can see pre-fed sector leaders emerge post-fed statements-if this rings true today Technology will lead us down or Basic Materials will lead us higher (weakest vs. strongest in last 5 days).  This time it may be more about Gold than anything else, based on Tuesday's breakout traders are betting on signs of inflation.  Will the Fed statement later today support or challenge the new record highs in Gold?

On just about any time frame the SPDR Gold (GLD) is showing a classic technical breakout, 60 Minute, Daily and Weekly - you can see the classic 'breakout' system (Acceleration Bands)  applied to each time frame below.  Late on you'll see why this move may be better to fade in the short-term, although, the technicals are showing trend strength.

GLD Weekly - Acceleration Bands

GLD Daily - Acceleration Bands

It's especially intriguing that this occurs the day before the FOMC announcement - was there a leak of some sort or is this just a risky bet?  We've seen similar action ahead of the Fed before...

It's no secret that traders have speculated on economic reports being leaked, most recently the ISM number, or even the acquisition of Sepracor (SEPR) being leaked.  In most cases LiveVolPro is my tool of choice for discovering these types of situations.  Just six weeks ago (the last FOMC meeting) I pointed out a large bond trade placed 90 minutes ahead of the announcement.