The aftermath of Fed's rate cut.

Investors found themselves confronted by two uncomfortable prospects: an end to interest rate cuts and a slowing economy.

The bond market's immediate reaction to the Fed decision, when long-term rates rose, is the one to which we should pay attention when assessing what it thinks the rate cut means. That would mean that the bond market is saying that lower short-term rates will have long-term inflationary consequences. The bond market is losing confidence in the Fed's credentials as an inflation fighter.

Tracking the Dow Movement.

The chart shows a congestion period till the day the Fed lower the rate by quarter point to 4.5%.

However, the members of the Federal Open Market Committee also effectively told investors and analysts not to expect another such reduction at the committee's next meeting on Dec. 11.

The following day on Thursday,the market nosed-dived again threatening investors with its venomous news---Citibank group downgrade and dismal Exxon group profit performance.

These two agendas are an excuse to profit-take and not a reason for the crash.The market makers have overdone.Actually it's the beginning of their shopping season and the mid-session of the Dow Index Futures.This is somewhat called Open low at the beginning and then move higher.

It's a profit-taking day and not a crash.The big-boys have cleverly manipulated the market after closing their books and taking the opportunity to get cheap stuff.

At the close of the final-bell,a small white body candlestick was impregnanted onto the previous minutes body.A child is born."Harami"http://www.litwick.com/indicators/1116.html