Markets continue to chew on the Fed's decision not to hike rates and the dovish comments regarding market volatility and global economic concerns. There was a late day sell-off which was not a big surprise with the market being at a 3 week high after running up into the decision. In reality, the reaction to the announcements was fairly tame.  The VIX also known as "the fear index" was down a bit at 21.14 in the range of previous highs indicating the market is returning to normal conditions.

After an initial ambivalent reaction to the announcement, markets have started to digest Yellen statements and futures point to a sharp drop at the open.  Relief that monetary policy making hasn't turned into a political football doesn't outweigh concerns about "heightened uncertainties abroad". But, encouraging comments about employment, albeit labor participation rates are still below trend, and a clear message about low inflation gave the market something to cheer about post-announcement.  But now what?  Is low inflation really something to cheer about?

Markets will continue to focus their attentions on when exactly the fed will begin to rate hikes. It looks more and more likely that a rate hike is out until 2016.  This Saturday, two regional Fed presidents will speak and others will follow next week.  The real positive in all of this may turn out to be a weaker dollar, combined with cheap oil will start to show up as strength in corporate earnings.

Today's Session

Today is quadruple witching with a variety of options expirations which is always a day marked by volatility and unexplained moves. It seems rather appropriate following the gaming of the FOMC announcement.

We get the August index of leading economic indicators report from the Conference Board at 10 am, which is anticipated to be up 0.1 percent following a 0.2 percent decline in July.  We also get the weekly rig count report that looks at current exploration, and crude and Natural Gas development in the U.S. and Canada from oil services giant Baker Hughes at 1 pm.

Gold is hitting a two week high, the dollar is lower, and bond yields have dropped since the Fed’s announcement.  Futures are continuing to deteriorate.