A nice bounce coming out of the FOMC Statement released mid-afternoon saw those same gains retract to the level of gains the market held prior to the announcement. To be quite honest, the statement issued by the Fed was very weak. It was essentially a recap of what they have already done to-date – nothing new at all, which could be a way of them tipping their cards to us that they are basically out of ammo – which I frankly would be happy to hear, because the less federal intervention in our economy the better off we will be in the long-term. Now, if only Congress and the President would realize they are out of ammo and let free markets (if we can still call them that!) dictate the outcome of the crisis that we are in.
President Obama spoke tonight, and it will be interesting to see what the market’s reaction will be – all but one occasion have we seen a nation-wide address not experience a sell-off of some kind. However, I don’t think there was any material in tonight’s press conference for the market to use for the better or worse – in fact, despite the economy being the #1 issue in America, not a single question was asked in regard to it.
Here’s the Nasdaq and S&P charts…
