Fed ingnite Selloff?

4/30/08

With expectation high, Fed did deliver the wishes and cut quarter basis point. However, the statement signal this is probably the end of the easing cycle. As I suspect and expect, market sell off the Fed cut rate news and close in red zone after Dow did reach 13010 in a brink of an eye. The S&P still cannot breakout the heavy resistance zone(1400-1406). Dow is broken the uptrend channel in 60mins window chart since 4/21/08. Today it formed a bearish gravestone Doji candlestick chart pattern just below the high resistance mark 1406. It needs one or two more days to confirm this reversal trend. Also, the indicator of RSI, Full Sto are getting close to sell signal. Although GDP number meets its estimate, non-resident investment(also the consumer spending) has turned south in Q1 2008. And market will announce the revise GDP on coming month( I am sure it will revise below water). After market, MSFT directors are in meeting to discuss raising bid for YHOO. It could be positive for both companies as well as the market tomorrow(at least for morning hour trade) if the deal is done. Let see how trader continue to play their trick.