Weak Sauce or Something Stronger

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Considering how far down we have fallen in a short amount of time, this morning’s rally is not overly impressive. To put it into perspective, we are barely back to, on the S&P 500, where we were before plundering in the final twenty minutes of yesterday’s session.  On the other hand, this is the first time in several weeks where I am seeing some actual upside  follow-through to the array of inverted hammers and dojis printed yesterday on many individual charts, such as VECO.

Naturally, given the ferocious move lower, plenty of traders doubt the credibility of this rally and are looking to put on some shorts at these levels. With the FOMC statement later today, the reaction by the market will be telling. From now until the announcement, though, I expect a bit of dead action, considering the dramatic reversal in the futures last night evening and spillover this morning.