Well, it looks as though the stock market isn’t too impressed with Operation Twist so far. I’ve not yet scanned the other news, but, based on the sell-off beginning at around 2:30 PM EST and then accelerating into the close of trading, it’s a pretty safe bet that markets were expecting something more from the Fed. After seeing the least volatility in months over the last week or so, stocks are suddenly volatile again as we move further into the two most dangerous months of the year with the Fed now sitting on their hands.
Look for more big swings after today’s 284 point plunge for the Dow (down 323 points from the intraday high just before the Fed policy statement was released). And it was going so good there for stocks last week when everyone thought that the Fed had their back.