The fed annoucement amounted to a pretty big downgrade of everything. The bond markets generally agreed…which should have meant that risk markets would have traded down - NOT UP…especially since the Fed took out specific language realted to QE and asset purchases from their official language. In Bernanke’s press conference he referred to the asset purchase programs but it was removed from the official statement. So, it seems the leverage in these markets and the financial system is creating tons of wacky decorrelations…there are quite a few going on now…hopefully we can get a real market soon.
One thing to keep in mind is that a fed reaction, especially of this type is usually wrong - and many times it is also a large emotional catalyst for a subsequent and usually fairly immeadiate reversal. Also, worth noting in today’s horrible market action is that the Dow just barely made a new high this afternoon and the Nasdaq100, even with Apple, was unable to eclipse the morning high.