Market Falls After FOMC Minutes Released
The market opened sluggish on Wednesday, lacking directional conviction. This was not surprising, since the market participants were waiting for the 2 p.m. release of the FOMC minutes (from the meeting held on October 30th). After the minutes were released, the market fell. The minutes indicated that the FOMC was considering scenarios for tapering before the economy improves.
At the end of the day, the Nasdaq fell -10 points (-0.26%), making its second close below the 10 SMA. The S&P 500 dropped -6 points (-0.36%) and closed at 1,781. Today was the third consecutive down day for both the S&P an Nasdaq. The Dow declined -66 points (-0.41%).
NYSE volume favored the decliners over advancers by about 2 to 1, and down volume beat up volume, also by a 2 to 1 ratio. The market ended near the lows of the day, which suggests the sellers are still in control, and the market could go lower on Thursday.
However, it was not a high volume sell off today, and strong volume to the upside could turn the tide. The VIX closed at 13.40. A close above 14.40 would would likely be needed for a serious decline in the market.
Today, retail sales were up +0.4%, a positive number for consumer spending. Tomorrow we could see more volatility with the release of weekly initial claims, the October PPI, and the November Philadelphia Fed survey.