So far, it has certainly been a buy the rumour sell the fact after FOMC yesterday with all equities down heavily on the day. Powell said the same support would be there- but didn't over-promise & left yield curve control as a distant option.
Elsewhere, Copper fully reversed the break upward from yesterday and in FX, commodity currencies completed the strong risk off environment, falling heavily.
Trump tried to blame the Fed (he seems to be giving China a break for the time being) & the White House voiced the idea that the next stimulus package could be out in July.
That's the one issue with a disorderly selloff; it puts pressure on the US government to approve stimulus quicker than planned & that could cut the drop short, at least for a strong intermediate rally.
However, overall, the tide has turned.
VIX wakes up
Going some way to confirm the force of the sell off, the Vix jumped to levels not seen since early May & currently looks to be closing near the highs.
If the selloff continues in the next sessions, it is highly likely that there will be some retracement early next week in a similar pattern to the first selloff this year.
This should provide another opportunity to short so we wouldn't look to be aggressively short into the weekend unless there is a retracement early tomorrow.