Violent Intra-day Dollar Action
This has been one of the more lackluster FOMC announcements as the Federal Reserve Bank did not say anything unexpected. Rates remained unchanged at zero to a quarter percent. The Federal Reserve Bank's statement was unchanged. What did move in erratic fashion after the Fed was the U.S. Dollar Index. Rarely if ever will the U.S. Dollar Index make 0.20 cent swings from one ten minute candle to another. As we all know by now when the dollar is lower it is much easier for the market to trade and inflate higher.
Many traders and investors are looking for the market to close above the psychological 12,000 level on the Dow Jones Industrial Average. This 12,000 headline on the DJIA is expected to get the small retail trader back in the market. Remember, since the May 6th, 2010 flash crash the retail trader and investor has disappeared from the market. This can easily be seen in the daily chart of the major indexes with the extremely light trading volume.