Fed Day-Interest Rate Pause?

Today is Federal Reserve Interest Rate Decision Day! (D-Day). By an overwealming majority, market pundits think the Fed. is going to pause today. Stocks may have already anticipated this in their run up over the past several weeks. Indeed by our analysis the market is near term overbought. This could generate a "sell the news" reaction later today. Meanwhile in the be careful what you wish for the folks over at "Ticker Sense have analysed what happens after the Fed. signals the all clear in the rising rate department. I reprint their analysis below.

Re-Post - Fed Pause Good For Stocks?

In our newly released study, The Inverted Yield Curve ~ The End of The Cycle, we analyzed prior Fed rate tightening cycles since 1962. Among our findings was that in the period spanning the Fed's last rate hike to its first cut (average span of six months), the market has an average decline of nearly 7%, and has only risen during two of the nine periods. In the chart below, we created a composite chart of the S&P 500's performance during the 'limbo' period of Fed tightening cycles.

You can find the link here. http://tickersense.typepad.com/ticker_sense/.