The very short term trend in the markets is down but the intermediate trend still remains in tact. The Nasdaq, which has recently seen the largest gains, has likewise seen the sharper pullback. However, breadth measures and low volume on yesterday's retreat suggest this pullback is nothing but a buying opportunity - just make sure to use stops in case things further deteriorate should the Fed prove less than friendly or should revised earnings outlooks become a game changer here.
More interesting is the market's relationship with the dollar here. The market pulled back on lower than average volume yesterday while the dollar bounced on lower than average volume. Without a catalyst that changes market dynamics, this should be followed by a continuation lower for the dollar and a reversal higher for stocks as the intermediate trend reasserts itself.