Investors with diversified portfolios should be in the phase of the year where they are evaluating their existing positions and looking to make strategic changes for 2016. This may include trimming underperforming holdings, doing some tax-efficient repositioning, or simply comparing your performance versus a reasonable benchmark.

The Federal Reserve meeting this week will be a key factor in determining the outcome for many investors in 2016 as well. Overall I want to caution against making any drastic changes to your portfolio in anticipation of this event. I think the risks are skewed to those who bet on a certain outcome, only to find that they are left unprepared for an unintended move in the market.

As I look through many charts of broad-based indices, I’m struck by how indecisive and trendless domestic stocks have been. This has been the result of a bifurcated sector dispersion that has created a tug of war in overall direction. The SPDR S&P 500 ETF (SPY) is virtually flat over the last 12-months and continues to navigate in a narrow channel.

If SPY can hold above $202, I view that as a positive sign that the stock market can hold things together in the near term.

There will likely be a great deal of intra-day volatility in SPY that accompanies any announcement by the Fed on Wednesday. Keep in mind that these fast moves should only be traded by those with short-term time horizons and aggressive risk management plans. For most investors, that means watching from the sidelines and evaluating the price action over the following days or weeks rather than instantly trying to divine the next big move as headlines break.

Another key index to watch will be the PowerShares U.S. Dollar Bullish Index (UUP). The uptrend in the U.S. dollar that began in mid-2014 appears like it may be losing some steam in recent months. The convergence of the 50 and 200-day moving averages on the chart below also support this thesis.