The Fed made no changes in rates, as was expected, but it said that it expects to keep rates low until late 2014 and that it plans to be "highly accommodative," and that has generated a little chatter about further quantitative easing. The dollar is being slammed and precious metals gained on the news, which is what always happens when we see the abbreviation QE.
Unfortunately, the market is just not in very favorably technical condition right now, and that is going to make it tough to generate much momentum. Don't forget, we have Ben Bernanke's press conference in a couple of hours, so that gives traders time to contemplate the whole QE3 idea.
I'm very unimpressed by the action I'm seeing so far today. Although it isn't that weak and breadth is positive, it is lacking energy and drive. Apple (AAPL) is covering up a lot of sins, and it is becoming a very narrow, sloppy and mixed market. I don't think market players have the conviction to chase things on the basis of the Fed at this point.