Fed Tuesday

Market collapses Monday and then overnight China CPI comes in a little hot at 6.5 and the S&P futures drop below 1080, Oil falls 5 dollars to 75 as everyone assumes this means China will have to pull liquidity out again.  Tuesday starts off up a little on an oversold style bounce for basically all "risk" assets and proceeds to play wait for the Fed at 2:15.  Fed statement comes out and down we go then straight up 70 points in an hour?  Wait, what.  Fed tells you they're not going to raise rates for 2 years hooray.  Or put another way, the US economy won't see any growth for at least 2 more years booo.  That equals bad in my world not 70 points straight up good, but never underestimate the markets ability to misunderstand Fed policy decisions.

You can see the drop after the Fed statement then 2:40 straight up into the close.