Once Again, Fed Announcement Comes with e-SPH Vulnerable at 1770...

12/18/13: Fed "Tiny Taper," market reacts violently on the upside after an initial knee-jerk decline.

1/29/14: Today's Fed statement will come at the same price level as the Dec statement.

If the Fed maintains its intension to taper, does the equity market embrace the decision and take off on the upside, or does the market unravel because of the added risks of the emerging markets that the Fed is choosing not to prioritize?

My sense is that the Fed will taper because QE is not working, and Fed action is doing more harm than good.

The Fed must restore normalcy that the system can and will function on its own.

That said, the reaction to the Fed's newfound discipline initially might look like a Fed policy error and investors will act accordingly.