http://www.financialsense.com/contributors/pater-tenebrarum/2011/06/24/why-the-market-did-not-like-the-fomc-statement
Free Money in Temporary Abeyance
Yesterday's FOMC statement can be read in its entirety here. Just as we noted yesterday, it contained no surprises. Essentially it was a carbon copy of its predecessors, although it adopted – not unexpectedly – a somewhat more cautious tone regarding the state of the 'recovery'. And yet, in spite of there not being any surprises, the stock market initially registered its disapproval by declining. The sell-off accelerated markedly when Ben Bernanke began his post meeting press conference. A video of the press conference is available here. On Thursday, the market once again sold off, only with even more gusto at first.
SPX, daily. A strong sell-off at the open on Thursday was followed by a late day recovery after a second test of the 200 day moving average – click for higher resolution.
The SPX intraday, a 10 minute chart showing the action on Wednesday and Thursday. Initially on Thursday the sell-off that began with Ben Bernanke's press conference deepened, but late in the day a bout of short covering brought the market back to close at only a slight loss – click for higher resolution.
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