It was a nervous week for the markets as September's history of weak stock performance kept some on the sidelines. The other main concern for the market (as overseas tensions subsided) was whether the FOMC may change its policy this week.
In last week's analysis Is the Junk Dump a Warning?, I noted the heavy selling in some of the high yield or junk bond ETFs ahead of the FOMC meeting. If we do see a change in the wording of the FOMC announcement, as some are expecting, it could trigger a sharp-but I believe brief-market decline.
In a way, it would be a positive as it would remove one more concern from the investor's wall of worry. A decline would also serve to reduce the high level of bullish sentiment as-amongst the Wall Street firms-the bearish strategist camp was reduced further last week.
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