The Most Ominous Aspect Of Today's Trading

The market has come off its lows from earlier in the day, and both the euro and oil have rallied back a fair bit. So we should take some relief that the bleeding has been staunched (maybe).

But here’s one disturbing thing: The market didn’t react positively at all to the 2:00 PM news from the FOMC that asset sales won’t commence until AFTER the first rate hike (which will probably be in 2012 at the earliest).

In fact, markets sold off after 2:00 PM.

This is a sign that the Fed is still deeply in the dove camp, and in the past, any noises from the Fed have been followed by near-instant jumps up. Didn’t happen today. Combine that with the Fed’s view that the economy is on the mend, and the rising euro, and our moderate down day looks pretty bad.

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