The Fed news is no news, but I would think the market will sell off first and then try to rally into the close since it rallied into the news so far. If this happens, it is probably bearish for tomorrow, but the financials are making a very sharp reversal and they are the reason of the decline primarily, I would not sell short this market even for a scalp until the bounce or rally in the financials weakens...
SPX 1490-1500 is a possible target if the market decides to rally and it would trigger the FLDs in about 4-5 sessions, if it can hold on there, the upside target would be a double top by the next 10 wk low. This is probably after a pull back over the next few days. There is no downside target left until the market dives under SPX 1440 decisively, it could trigger a 40 wk FLD and maybe a cycle straddle, but quite unlikely. This still looks like a bottom...
http://stockcharts.com/c-sc/sc?s=$SPX&p=D&b=5&g=0&i=p90035971973&r=9971&.png
Good luck,
- kisa
BTW, another alternative is to sell on large volume, but not take yesterday's lows today. It would be a capitulation of the weak hands one more time to the stronger hands. Although I think the market will rally into the close, a sell off that fails to take the lows would be quite bullish and I would expect a gap up tomorrow in this case...
