The Fed's fear.

Minutes of the Federal Reserve’s March meeting expressed concern about downside risks to an outlook for activity that was already weak.
Federal Reserve officials feared the U.S. economy might fall into a self-reinforcing cycle of rising unemployment and slumping business and consumer spending, making credit tighter in a weak financial system.
The outlook prompted the Federal Open Market Committee in a unanimous vote to boost its open-market purchases of bonds by $1.15 trillion, continuing its unprecedented increase in money supplied to the economy. The U.S. central bank has used its own balance sheet to provide financing for markets in commercial paper, asset-backed securities and mortgage bonds, markets it deems critical for financial stability and economic recovery.
Their projections showed “the unemployment rate rising more steeply into early next year,” the minutes said. Policy makers expected further job cuts “though perhaps at a gradually diminishing rate.”

Tracking the Dow on Wednesday,08/04/09

9:30am:--Mild gap-up of 30.0 points.

The absence of any new headline or economic release.

10:30am:--Gap fully covered.

An inverted bullish hammer.The Treasury plans to extend bailout funds to struggling life insurance companies, which is helping lift shares of beaten down companies like Lincoln National (LNC) and Hartford (HIG).

11:30am:--Resistance line broken.

The Securities and Exchange Commission is currently holding an open meeting to discuss possible short sale restrictions.The first recommended approach to regulate short selling uses a short sale price test approach, while the second uses circuit breakers.

12:30 noon:--Bullish spike up.

Earnings season began unceremoniously last evening when Dow component Alcoa (AA 7.78, -0.01) reported a deeper-than-expected loss. The shares are currently trading in mixed fashion.

1:30pm:--The height with a shooting star.

Just hitting news wires, the minutes from the Federal Open Market Committee's March 18 meeting indicate that the committee members felt that as the U.S. economy was deteriorating, foreign activity was softening, according to Reuters.

2:30pm:--Bearish spike to MAV line.

Financials have been a focus of the recent selling effort.

3:30pm:--The days low followed by ascending soldiers.

Despite the strength of insurers, the financial sector, as a whole, lagged the broader market for virtually the entire session.

4:00pm:--A small bullish hammer.

Shorties are again hitting the market.

The support line has been breached and rebounded.This pair of candlestick is the morning star.The other half-naked body will be covered again very soon.

Insurance and technology shares led the market higher in a volatile day Wednesday, breaking a two-day slide. But a dim view of the economy from the Federal Reserve and jitters over looming earnings reports kept buyers in check.