The markets reacted negatively to yesterday's Fed policy announcement wherein they once again indicated that they remain ready to increase or decrease their QE bond purchases as necessary until employment improves materially or inflation begins to increase beyond their target window. Volume came in lighter by the close, so the indexes escaped distribution days despite being down nearly 1% across the board.
Progress in individual stocks remains difficult as the few actionable buy points that do occur generally fail to materialize into more substantial gains, leaving the underlying action in a mostly trendless or choppy state of affairs. Thus we find this to be a time where investors should be alert and cautious as the indexes form what is looking like a broadening top with higher highs and lower lows. This is a rare type of formation, hence its statistical reliability as a topping indicator is not readily determined given an arguably tiny sample size, but the volatile action of the indexes does make for a more challenging environment that calls for a less aggressive stance.
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