The Federal Open Market Committee announced the much-anticipated Operation Twist today but gave the impression that they are out of bullets and the market dived lower. Yesterday’s push thru failure and this morning’s weakness gave us clues about the bear strike. The lead stocks tried to stay in the green but reversed at the end of the day. The weakest stocks like China names, small caps and financials continued lower. If we test the lower channel support at 1135-1140, it may not hold this time.
