News out of the way.

No surprises there, the tea party moves to the house where they can now read the tea leaves. If they are smart, they will see the reality and act appropriately but I think they will just be posturing as always. The Fed came in on near where they said they would on QE-2.

Some volatility after the Fed, but equity markets end with the usual upward close, as bonds and the VIX get crushed.  My bond call from Monday came in green, so I am pleased. As for stocks, no one wants to sell anything as they’re convinced that equity prices go higher.  This may be a one day wonder, but there is no technical reason to initiate shorts in anticipation of the downside. Let the market tell you when (and if) it wants to go down and watch the dollar.