Via streaming quotes, I’ve had the opportunity to watch how the market has reacted on days where there is a scheduled Fed announcement. The typical pattern is usually a slow build up until the Fed releases the statement at which point there is huge volatility. The market spikes up and/or down once or twice before deciding on a direction. It’s always a nailbiter. Today was no different. Here’s a 2-day chart of IWM (it tracks the Russell 2000) to demonstrate what I’m talking about:
Can you tell where the Fed made it’s announcement? Even without my big hint, I’m sure you could make an educated guess.
Anyways here is a longerterm chart of the IWM:
I still am in agreement with some of the bears out there that there is room for more downside to the markets.
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