The S&P 500 opened in the green but sold off through the morning prior to the 2pm ET Fed event. The index showed some predictable volatility with the release of the statement, which this month included their projections. It subsequently hit its 0.50% intraday high during Chair Yellen’s press conference. But the modest enthusiasm faded in the final hour. The index closed with a fractional gain of 0.20%. Here's an excerpt from the FOMC's statement today:
To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate. In determining how long to maintain this target range, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term. [source]
The 10-year yield closed unchanged today at 2.32%.
Here is a 15-minute chart of the past five sessions.
As we can see on the daily chart, the S&P 500 remains below its 50-day moving average. Trading volume on today’s Fed news was tepid.
A Perspective on Drawdowns
Here's a snapshot of selloffs since the 2009 trough.
For a longer-term perspective, here is a charts base on daily closes since the all-time high prior to the Great Recession.
