The Fed concludes their two day meeting today with an announcement at 2pm and no press conference with Ben Bernanke. Markets are widely expecting absolutely nothing! No taper, certainly no increase and absolutely not even the hint of a rate hike anytime in the next few years.
There is a very bullish tendency for stocks to rally on statement day and we should expect nothing different unless today begins the long awaited pullback. I have written about stocks being tired with the index leaders like the S&P 400, Russell 2000 and Nasdaq 100 basically going sideways for the past week or so. But this week, the laggards, the Dow and S&P 500, have stepped up and rotated into the leadership position. That continues to signal intermediate-term strength and bullishness. Bottom line is that weakness is still a buying opportunity until proven otherwise. A pullback would be very healthy here, either by price moving lower for a few days or sideways for a week or so.