Today's market action started out rather well. When the Federal Reserve announced today that they planned on keeping interest rate low for a long time to come, the market really took off. At some point, however; the music stopped playing and the market had a huge reversal.
The NASDAQ at one point was up 26 points and finished down 2 on a pickup in volume. The S&P and the DOW also reversed. They sold into the move, pretty harshly. This typically leads to more downside testing. Cisco is up in the aftermarket and that may help us today.
The news today was the fed. The same folks who said the economy was fine before the crash is now telling us inflation is fine and everything is in check. There is only one way to accommodate for inflation, interest rates will rise to levels we haven't seen in a while. Just like before when nobody thought house prices could drop 40%, we may see interest rates rise to levels nobody thinks is possible. Go study 78, 79, 80 and what interest rates did and why they occured. Bernanke needs to be watched and reconsidered. We will all pay the price a couple of years down the road.