The decline in the FTSE 100 could be counted as complete but not in the S&P 500. The S&P is reluctant to go down probably because investors are waiting to the see the FOMC statement tonight at 7pm.
There is no reason to suspect any change in the amount of tapering but we could get a hint about rising interest rates in the wake of the strong CPI data released yesterday. This would be bearish for stocks and the stock market would drop.
We have noticed some strong economic numbers recently, employment is strong and now inflation as measured by the CPI is on the rise. This could prompt the Fed to raise interest rates earlier than anticipated. The CPI came in at 0.4% (MoM), the biggest gain in more than a year, and 2.1% (YoY).
I don't think there will be many buyers today ahead of the FOMC announcement. A sell off in the US tonight would drag the FTSE lower, this is why it could be premature to go long at current levels.
