The Calm Before the Storm?

What a delicious cliche for a title. But appropriate? I think so. The market has obviously been twiddling its collective thumbs in anticipation of the Fed decision. Although it is fairly likely the outcome will amount to 1/4 point, it's the language and the atmosphere the market awaits. I've included a few breadth charts below of the S&P 500 components. They include the number of stocks above and below their 50-bar moving average on a fifteen minute chart, a great looking rally breadth chart the guys from Worden came up with for the Blocks Trader platform and an advance/decline ratio and an advance decline line. All illustrate the waning support for the rally.

In other market related news, GDP came in stronger than anticipated. I posted analysis the other day from Briefing.com that predicted this outcome. Also, the ADP report showed an increase in non-farm payrolls. Both events were a net positive for the market.

Keep in mind, for years now the market's initial reaction to the Fed announcements has typically not been the final reaction. Sometimes the market shucks and jives for several days or even a week before deciding what it really thinks about the Fed decision. Just be aware of that phenomena in advance planning.