I hate to make too much out of the initial Fed reaction but it's hard to understate today's reaction. It often seems to take a couple of days for the market to fully digest the Fed's actions / statements and that may prove to be the case this time. But the initial reaction is that the market clearly didn't like the prospect of even more rate increases.
It should be no surprise that today's action created a lot of bearish patterns in the charts. I'm seeing many shooting stars and bearish engulfing patterns tonight. So I'll probably have a nice long list of potential shorts in the morning (OXPS, for one, is looking ripe as it fades from its 50-day moving average). Probably the most troubling thing I see is the S&P 500 dropping back into its old trading range. That very well may embolden / motivate sellers. As always, we'll see...
Here are charts of the Nasdaq and S&P 500:
