Editor's Note:

The market's oversold bounce looks pretty tempting here. A lot of sectors are rebounding but I don't trust it, especially with tomorrow's FOMC meeting and Bernanke's press conference a potential landmine. Earnings from FedEx (FDX) could also put a dent in this rebound and the company reports earnings tomorrow morning.

If I just had to trade something tomorrow I'd probably focus on healthcare since this sector has shown the most relative strength. Given the potential for volatility tomorrow around the FOMC meeting and Bernanke's comments I am not adding new positions tonight.

FYI: I did consider a bearish trade on the JJC copper ETF since this ETF has a bearish trend of lower highs and lower lows and resistance near the 50-dma. Plus, the 50-dma is about to cross under the 200-dma, which is historically a very bearish development. Another idea would be options on the VIX. Aggressive traders could buy calls on the VIX if you're expecting the market to reverse lower.

- James