F_E_D Knee Jerk Reaction

OK, if I had a prize I'd give it to the first person to email me what I always say about anything F_E_D related as far as the market goes, but I don't.

For older members yes you are going to hear it again, for newer members, older members could tell you it's true more often than you'd believe...

"Anything F_E_D related almost always sees a knee-jerk reaction and that knee-jerk reaction is almost ALWYS wrong".

So the F_O_M_C minutes came out, the committee is not as hot on QE as you might suppose considering they just added Treasuries to MBS at the last policy meeting, but some are talking about an end to QE before 2013, the market does not like this and reacted in such manner, but these knee jerks are almost always wrong. Lets take a quick look at the very short term as the market moved down on the minutes and this may help with our timing.

If I had to guess, the minutes which are released to news organizations hours before the public on an embargoed status, probably leaked out as you'l see negatives on the 1 min chart as the minutes come out.

These are 1 min charts only, after that there's not much positive.

 DIA negative right before the minutes are released, current 1 min (ONLY) positive divergence. A move up in price from here can be used to distribute in to so it may be helpful.

 IWM 1 min (ONLY) also negative just before the minutes in 3C and positive on the decline, 1 min is intraday only so not really strong, but maybe enough to consolidate or send it higher intraday.

SPY the exact same.

We'll see if the longer charts get more negative in to any potential upside, that would be a very big timing hint.