1:50pm (EST)

The Fed did the expected and extended its Operation Twist program.  The market immediately rallied off the news but not before a sharp decline to new lows just ahead of the announcement.  This shows you just how touchy this market is and how it remains hostage to headlines.

Ben Bernanke speaks in 30 minutes and he will have the whole world in his hands.

The Fed said they would extend the Operation Twist program that would drive down long-term interest rates which BTW are already at record lows.  Their plan is to pump another $267 billion in securities into the “system” until year-end.  The Fed said the economy is not performing as expected and stand ready to act further to spur borrowing and spending.

The Dow and S&P peaked just above their 100-day MA’s (moving averages) but the Nasdaq failed to clear this key resistance level.  The market is also giving back its gains as Big Ben steps up to the plate.

Man, this is going to be a run ride!  We hate to quote TO but get your popcorn ready.

As we head to press, the market is mixed and looks like this: 

The Dow is lower by 3 points to 12,834 while the S&P 500 is down a point to 1,356.  The Nasdaq is up 2 points to 2,932 while the Russell 2000 is higher by a point to9 787.

Subscribers, check the Members Area for the updates and stay locked-and-loaded.  We may send out New Trade Alerts if there is a violent move in either direction.