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This market was looking for a reason to sell off. The Slow Stochastic was very overbought. The highest its been since March 2003. That week the Dow lost about ten per cent.

If the Fed had cut .50 - the market would have said - OMG - things must be really bad - what does the Fed know that we don't - SELL

The Fed cut .25 (and the discount rate .25 when expectations were for .50) - that's disappointing - we wanted more - SELL.

If the Fed hadn't cut - OMG - look out below - SELL SELL SELL.

No matter what the Fed would have done - the market would have sold.

The indicators were showing far too much optimism.

I could go on about a lot of other indicators - but for me the extremely overbought nature of the Slow Stochastic made this a no brainer.

Cheers
Red