The Fed pretty much gave us what most market watchers expected today: economy stable but weak, policy remains unchanged, standing by to ease further if deflation appears to threaten.
The stock market, which had been trading slightly down all day prior to the announcement, spiked up and fell back again in the space of an hour and a half. The SPX and other major averages finished in the red on a modest increase in volume, as declining issues outnumbered advancing issues and down volume swamped up volume.
With investors sensing more QE in the works, the Dollar sold off and gold gained. Yields on the 10 and 30 year Treasuries fell and, we should note, have failed at their 50 day moving averages (the 30 yr had gotten through last week while the 10 yr had not).
It will be interesting to see if the nascent stock rally can extend itself, as the bond market is again signaling concerns about economic weakness, while the gold and currency markets may be signaling concerns of their own.