Stocks sold off sharply and went out on their lows as the Fed did exactly was was expected, no more no less, but went on to cite 'significant downside risks.'
Given the downgrades of US and Italian banks this was too much for trader's to take, and there was a flight into the dollar and Treasuries, the latter at least in part as a reaction to Operation Twist which will be buying in the 6 to 30 year Treasuries.
It will not surprise me to see a rally tomorrow, grinding higher perhaps after a weak open, and gaining momentum after the European close. Or perhaps I am just being too cynical. So let's see what happens.
