The bears got their third win in-a-row on Wednesday following a week of hype the Federal Reserve was ready to take action. Like we predicted, the Fed didn’t make any significant changes to its policy statement on Wednesday and after an initial selloff, the market recovered to push positive territory in the final hour of trading.
The Dow and S&P were near even and the declines in the two indexes came in the last 5 minutes of trading. Tech and the small-caps, on the other hand, rebounded but finished at their lows for the session which was bearish.
The zombies played the same’ol tune and said they would “provide additional accommodation as needed.” The Fed also echoed their ongoing statement of leaving the funds rate at exceptionally low levels through at least late 2014. Many market pundits were hoping they would have at least have said they are extended the zero-0.25% rate until 2015. ( read more… )
Important Notice! The chart action in the Russell 2000 on Wednesday was so important we wanted to show you the details which could get scary if things play out like we believe they will. Subscribers, please make sure you login to the Members Area to see the charts.