Anxiety over the outcome of the Fed meeting, coupled with fear that we may have reached an interim top in the market, kept a lid on any recovery efforts yesterday, and the markets closed down for the second day in a row.

In the bigger scheme of things, the losses were moderate and, given the recent advance, they were long overdue.

The bulls hope that this current sell off is merely a consolidation with a new rally being set up for the fall. I would not hold my breath for that to happen as this market has come a long ways based on nothing but smoke and mirrors.

Once the outcome of the Fed meeting has been published, without surprise announcements, we’ll see if the bullish crowd has enough muscle to drive the major indexes to a higher level.

Any indication by the Fed that the recovery is delayed, or that the green shoots are actually weeds, will most likely put the bears in charge.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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