FOMC causes market to drop

The market gapped up at the open and went higher for half an hour. Than the reversal came, stopping at yesterday's close. A small bounce started to transform in a base with higher lows. Just after we broke out from that base, FOMC-minutes were released. No surprises and interest rates still at 0.25%.

But appareantly the market expected more. We dove back down to the low of the day, paused on it (minor bounce) and eventually broke lower. Once yesterday's lows broke, lot's of stops got hit. That created a big, high volume drop lower with only half an hour to go until the end of the session. Lot's of buyers coming in near the close, but the daily chart has a very bearish look.

We dived into the gap from 2 weeks ago (see daily charts). The next big support in SPY is 121. I'm not expecting any major bounce before that level is reached. But then again, any bullish news regarding Europe might change that.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Gold, silver and copper were not able to break higher before the FOMC-release, but they did go down together with stocks, right after.

Oil spiked up over $100 (+$2.5) at the open on Iranian rumors (Iran closing the Strait of Hormuz, later proved false rumors). After a base under 100, price went higher again, only to drop back after the FOMC-releases. But oil held strong while stocks and almost everything else dropped rather hard.

Meanwhile, the euro lost big for the second day in a row. It's making new lows and we are slowly approaching the January lows (right under 1.29).