If the markets are going to find their footing, they would have a better chance of putting in a meaningful bottom by reversing off of their lows instead of gapping higher. After FED rate decisions, the market will usually make a couple of sharp moves in different directions before settling on the final trend later in the trading day.
With investor sentiment being so negative, I think there is a good chance of getting a rebound in the not to distant future. There is no good news anywhere. The current housing crisis is being called the worst since the great depression. A former or current NASA scientist says that we only have 20 years before we experience radical climate change, oil and fuel prices are spiraling out of control, we are on the verge of a recession, and everyday Americans and investors are pulling money out of domestic stock funds.
The smart money is going to start taking advantage of the bargains out there at some point and when they do, it will be swift and without warning. As it stands now, investor sentiment is as bearish as it was during the bottom of the 2000 - 2002 bear market. At that time, record amounts of funds flowed out of stock funds and into bond funds. Investors could be repeating the same mistake again.
Arthur