It seems like the market has developed a pattern of developing extreme anxiety before the Fed announcement and then nothing happens. We find ourselves wondering what were we anticipating? Is that all there is? SPX closed at $2002, up $3 and RUT gained $3 to close at $1154. Volatility is unchanged with the VIX at 12.7%. Trading volume was up modestly with 1.9 billion shares of the S&P 500 stocks trading. Volume rose 3% on the NYSE, but fell 5% on NASDAQ.

The consumer price index, CPI, came in at -0.2% for August, but that doesn't match my everyday experience. None of my food or fuel expenditures are lower.

The FOMC announcement was essentially unchanged from previous meetings. The reduction of the quantitative easing program continues ten billion dollars at a time and will be eliminated in about two months. There was no new language about increasing interest rates - that seemed to be the key point worrying the collective market. SPX shot upward after the FOMC announcement, coming within a few cents of matching the intraday high at $2011 set on September 4th. But then it pulled back to close at $2002. Don't let your guard down. The volatility following the Fed announcement in the past has extended into the next trading session. The tendency of this market is definitely bullish, but it remains very nervous.