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The big focus this week was the FOMC meeting, and as you can see in the chart below, the stock market didn't take it well. This week the Fed informed investors that they were more concerned about inflation than they had led on in the last few months. Tapering plans were officially talked about and the projection for rate hike moved up the calendar to two hike by the end of 2023. Previously no rate hike were expected until 2024 which was very dovish. On Friday Fed member James Bullard said ...

If you like crazy mixed up action, you got it on Thursday. The continued reaction to Fed's tapering comments saw stocks all over the place yesterday. The Nasdaq rallied big, while the Transports and the small caps of the Russell 2000 and got beaten down. The S-fund held up well despite the big loss in the Russell 2000. The S&P 500 was flat while the Dow lost 210. The dollar rallied and yields dropped. I saw what was happening and get the gist of it, but exactly why some things were happening ...

Stocks sold off after the Fed announced possible interest rate hikes in the future. The Dow lost 266-points, and with the dollar soaring on the news, prices were down almost across the board. Small caps and the Nasdaq held up fairly well comparatively, and over all it wasn't too bad, just volatile for a while there as expected on an FOMC meeting day.

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Stocks were down on Tuesday with the Dow shedding 94-points. And other than the Transportation Index which was up 0.73%, most major indices were flat to down on the day. Trading volume remains on the low side as traders stepped lightly in front of today's big FOMC meeting. Bonds opened lower but battled back to close relatively flat. The dollar was up but remains below resistance.

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New closing highs for the S&P 500 and Nasdaq on Monday, while the Dow and small caps posted losses. A late surge in the final minutes of trading, similar to Friday afternoon, pushed the winners to new highs and the laggards off their loss. Bonds and the dollar were down.

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