The Fed's interest rate decision Wednesday was the catalyst for some of the worst selling we have seen since the crash in 2008. Operation Twist was expected, but the market was disappointed that the quantitative easing program wasn't expanded.
It wasn't just the Fed news that caused selling pressure, it was the growing perception that the Fed is running out of ammunition and that there just isn't much it can do to help this poor economy with interest rates already near zero.
If the only issue was the Fed, we probably would have seen some quick buying interest, but the focus quickly changed to the mess in Europe. Not only are the sovereign debt issues unresolved, but there is growing concern that individual banks may be in trouble as well.
There is a tremendous amount of uncertainty about the European situation and we are jumping around constantly as each new headline or rumor hits. While many market participants aren't very optimistic about a solution they are also afraid of being squeezed by whatever talk emerges from the G20 meeting this weekend.
It's a good time to identify candidates to buy.