Courtesy of John Nyaradi.
Stocks were doing fine on Wednesday until the release of the FOMC minutes, when the selloff began.
The major stock indices were in positive territory on Wednesday until just after 2:00. The release of the minutes from the October 29-30 
meeting of the Federal Reserve’s Federal Open Market Committee (FOMC) sent stocks falling. Despite widespread expectations that the Fed would begin to taper its bond purchases in March, the language used in the FOMC minutes put investors in a “risk off” mode. The following passage is what sparked the stock selloff:
During this general discussion of policy strategy and tactics, participants reviewed issues specific to the Committee’s asset purchase program. They generally expected that the data would prove consistent with the Committee’s outlook for ongoing improvement in labor market conditions and would thus warrant trimming the pace of purchases in coming months.
For some reason, use of the term “coming months” was just too scary-sounding for investors. Since the month of March is coming in less than four months, there wasn’t really anything new here.
The Dow Jones Industrial Average (NYSEARCA:DIA) lost 66 points to finish Wednesday’s trading session at 15,900 for a 0.41 percent decline. The S&P 500 (NYSEARCA:SPY) retreated 0.36 percent to 1,781. Falling Wedge on ES
The Nasdaq 100 (NASDAQ:QQQ) declined 0.32 percent to finish at 3,367. The Russell 2000 (NYSEARCA:IWM) dipped 0.14 percent to 1,099.
In other major markets, oil (NYSEARCA:USO) declined 0.27 percent to close at $33.63.
On London’s ICE Futures Europe Exchange, January futures for Brent crude oil advanced 88 cents (0.82 percent) to $107.80/bbl. (NYSEARCA:BNO).
December gold futures declined $31.50 (2.47 percent) to $1,242.00 per ounce (NYSEARCA:GLD).
Transports drove slowly over slippery pavement on Wednesday, with the Dow Jones Transportation Average (NYSEARCA:IYT) declining 0.33 percent.
In Japan, the exchange rate for the yen continued to be the dominant factor in stock market activity. Japanese stocks retreated on Wednesday as the yen strengthened to 99.97 per dollar just before the closing bell in Tokyo. The yen had weakened to 100.24 per dollar earlier in the session. A stronger yen causes Japanese exports to be less competitively priced in foreign markets (NYSEARCA:FXY). The Nikkei 225 Stock Average declined 0.33 percent to 15,076 (NYSEARCA:EWJ).
In China, stocks advanced as investors responded favorably to an article written by People’s Bank of China Governor Zhou Xiaochuan, who explained the efforts underway to make the yuan more convertible and to loosen controls over interest rates. The Shanghai Composite Index climbed 0.62 percent to 2,206 (NYSEARCA:FXI). Hong Kong’s Hang Seng Index advanced 0.18 percent to end the day at 23,700 (NYSEARCA:EWH).
Stocks declined slightly in Europe following reports that the European Central Bank is considering a negative interest rate on deposits to force idle money back into the economy. The Euro STOXX 50 Index finished Wednesday’s session with a 0.06 percent dip to 3,047 – remaining above its 50-day moving average of 2,984. Its Relative Strength Index is 54.74 (NYSEARCA:FEZ).
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