The VIX is 15.98 well above the 200-day MA at 14.06 where the market bulls would celebrate (under the 200-day MA). TRIN is 1.03 dead neutral refusing to pick a side. The 10-year yield is 2.33% running higher all day long. Gold 1224. Silver 17.27. Copper 3.10. The higher copper today helps the bull case.
Whoa. Look at that. NYA 10645. The critical 40-week MA is 10647; one of Keystone's important market cyclical indicators (see previous chart). The stock market falls back into a cyclical bear market pattern albeit by two bucks. See if it can hold today, or not. The bears are fighting back as the Fed statement release is imminent.
The vote is 9-1 with Kocherlakota dissenting. Kocherlakota is a dove. So the couple of hawks on the Fed are in agreement with the end to QE but a dove disagrees confirming a more hawkish statement. The Fed statement hints that a June 2015 target for the first rate hike is firmly in place if not sooner which shocks the market since yesterday traders expected a statement about keeping QE available on the back burner if needed. It is surprising how the Fed downplays deflationary concerns.
Note Added 2:25 PM: Equities are bouncing. SPX 1975. Dow 16975. Nasdaq 4532. RUT 1141. 10-year yield 2.35%.
Note Added 8:55 PM: The end to the wild day of trading is chronicled on the Keystone the Scribe website. Use the link here or in the right margin.