Summertime, and the Sellin' Is Easy
Going into the FOMC policy decision, the conventional wisdom was that the market was set up for a "sell the news" reaction, particularly if the Federal Reserve didn't do something other than extended Operation Twist, which was widely anticipated. The Fed did exactly that. Despite the disappointment, the indices help up quite well. There was no sudden rush for the exits due to lack of QE3.
As I discussed Tuesday, the market has had a tendency not to sell off on the Fed news, even when it has run up and become extended. The question is whether there will be a delayed reaction and more aggressive selling, as the fact that there's no immediate positive catalyst sinks in. The market is still technically vulnerable, and further consolidation would not be surprising or unhealthy....139 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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