Stock indexes sell off on Fed’s unchanged outlook

TUESDAY'S MARKET WRAP-UP

Market Snapshot for December 14, 2011 (2:15 a.m. ET):

Closing Prices: DOW 11,954.94 (-66.45, -0.55%), S&P 500 1,225.73 (-10.74, -0.87%), NASDAQ 2,579.27 (-32.99, -1.26%), Nikkei 225 8,519.13 (-33.68, -0.39%), DAX 5,774.26 (-, -%), FTSE 5,490.15 (+62.29, +1.15%)

OIL 99.90, GOLD 1,642.80, SILVER 30.975

EURO 1.3038, YEN 77.94, BRITISH POUND 1.5482, U.S. DOLLAR INDEX 80.275

Rates Unchanged

Tuesday brought with it another Fed day, but as we've seen over the past several years, it hasn't led to a great deal of change. In fact, the Fed once again left its key lending rates unchanged and its outlook equally demure. It seems that perhaps the market was looking for a greater glimmer of hope in the outlook though. The indices kicked off the session in positive territory, but resistance heading into the bell held and the gap closed by 11:15 ET. The mid-day price action remained bearish as the indices formed a two-wave continuation pattern mid-day to favor a break lower into the afternoon. This breakdown came with the Fed announcement.

Dow Jones Industrial Average (Figure 1)

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