The Fed's policy decision appears to be more aggressive than many had anticipated, which is causing a positive reaction. The addition of an unemployment goal of 6.5% has caused a little initial confusion, but the bulls are celebrating this extra dose of Fed-supplied liquidity and the open-ended nature of it.
The bears are likely to spin this action as a sign that the economy is weaker than expected, but since when has that mattered to the stock market? Fighting the Fed is always a tough way to make a buck.
The news has taken the market to an intraday high, but it isn't the euphoric buying that a dovish Fed has generated in the past. The market likes the news, but is a little hesitant to chase. Recent history is that the Fed doesn't have the same market-moving clout that it used to, and that fiscal cliff issue is still on the table.
Don't forget that Ben Bernanke has a press conference at 2:15 p.m. EST, which will add further color to the decision. It is market-friendly news, and I do not intend to fight it. The bears who were hoping for a sell-the-news reaction are being squeezed and underinvested bulls continue to look for exposure.