About 15 minutes ago the Fed announced no change in its current monetary policy. It predicted that very low short term rates will persist until the end of 2014.
As you know (or should know) very low interest rates are associated with periods of high unemployment and very slow economic growth. So the Fed has pledged to continue its failed monetary policy for two more years while doing nothing to promote a reduction in the unemployment rate and increased rates of economic growth. And this during a time when the rest of the government seems determined to drive the US off of a fiscal cliff!
Well things are what they are. The important task now is to see how the market responds to this bearish announcement from the Fed. Right now the S&P is holding above the low it made right after the announcement. I'd say that if it manages to close up on the day we will have the first bit of evidence that the market's technical condition is very strong and much higher prices lie ahead. A still higher close tomorrow would be even more convincing evidence of technical strength because the European Central Bank is scheduled to announce the results of its latest meeting tomorrow before the markets in the US open.
My own suspicion is that the S&P will put in these higher closes and if it does my view that the market is headed above 1400 will be reinforced.